NOW Inc (NYSE: DNOW)

NOW Inc. distributes energy and industrial products to upstream, midstream, downstream, and industrial markets in the United States, Canada, and internationally. The company’s products include pipes, valves and valve automations, fittings, mill and industrial supplies, tools, safety products, and artificial lift systems. It also provides supply chain management, project management, and e-commerce solutions. The company offers its products under the DistributionNOW and Wilson Export brand names. It serves oil and gas operators and drilling contractors, refineries, chemical companies, utilities, manufacturers, and engineering and construction companies.
Take a look at the 1-year chart of NOW (NYSE: DNOW) with the added notations:

DNOW has been trending lower pretty much since the stock IPO’d last year. Over the last month or so, however, DNOW has been finding support at $22 (purple) whenever that price has been approached. Now that the stock is there again, traders should be able to expect some sort of bounce. However, if the $22 support were to break, much lower prices should follow.

The Tale of the Tape: DNOW has a key level of support at $22. A trader could enter a long position at $22 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.
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