The Babcock & Wilcox Company operates as a specialty constructor
of nuclear components for customers in the power and other steam-using
industries. The company’s Power Generation segment designs, engineers,
manufactures, supplies, constructs, and services utility and industrial
power generation systems, including boilers used to generate steam in
electric power plants, pulp and paper making, chemical and process
applications, and other industrial uses. Its Nuclear Operations segment
manufactures naval nuclear reactors for the U.S. Department of
Energy/National Nuclear Security Administration’s Naval Nuclear
Propulsion Program, which in turn supplies them to the U.S. Navy for use
in submarines and aircraft carriers. The company’s Technical Services
segment provides services to the U.S. Government comprising uranium
processing, environmental site restoration services, and management and
operating services for various U.S. Government-owned facilities. Its
Nuclear Energy segment fabricates pressure vessels, reactors, steam
generators, heat exchangers, and other auxiliary equipment.
Take a look at the 1-year chart of Babcock (NYSE: BWC) with the added notations:
BWC has been trading mostly sideways since August of last year. In
addition, the stock has found support at $27.50 (red) whenever that
level has been approached. Now that the stock appears to be have broken
that support, lower prices should follow.
The Tale of the Tape: BWC broke a key level of
support at $27.50. A trader could enter a short position on any rallies
up to or near $27.50 with a stop placed above the level. If the stock
were to break back above the $27.50 level, a long position could be
entered instead.
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