National Oilwell Varco, Inc. provides equipment and components for
oil and gas drilling and production; oilfield services; and supply chain
integration services to the upstream oil and gas industry worldwide.
The company’s Rig Technology segment offers offshore and onshore
drilling rigs; derricks; pipe lifting, racking, rotating, and assembly
systems; rig instrumentation; blowout preventers; coiled tubing
equipment and pressure pumping units. The Petroleum Services and
Supplies segment provides consumable goods and services to drill,
complete, remediate, and work over oil and gas wells. Its Distribution
and Transmission segment provides pipe, maintenance, repair, and
operating supplies and spare parts to drill site and production
locations, pipeline operations, processing plants, and industrial
facilities; procurement, materials management, and logistics services.
Take a look at the 1-year chart of Varco (NYSE: NOV) with the added notations:
NOV may be forming a bearish chart pattern known as a double top.
Double tops are reversal patterns and are as simple as they sound:
Rallying up to a point (T), selling off to a support, and then rallying
back up again to approximately the same top (T).
NOV appears to have formed the double top price pattern (blue) over
the last 3 months. As with any price pattern, a confirmation of the
pattern is needed. NOV would confirm its pattern by breaking the $80
support (red) that was created by the double top pattern.
The Tale of the Tape: NOV has formed a potential
double top. A short trade could be made on a break of the $80 level.
Since there is no guarantee of a breakdown, a long trade could be made
at $80 if a trader is willing to disregard the pattern.
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