Basic Energy Services, Inc. provides well site services to oil and
natural gas drilling and producing companies in the United States. Its
Completion and Remedial Services segment offers pumping services, and
fishing tools; coiled tubing; snubbing services; thru-tubing; cased-hole
wireline services; and underbalanced drilling in low pressure and fluid
sensitive reservoirs. The company’s Fluid Services segment is involved
in the transportation of fluids; the production of salt water; the sale
and transportation of fresh and brine water; the rental of portable frac
and test tanks; the recycling and treatment of wastewater; the
operation of fresh water and brine source wells, and of non-hazardous
wastewater disposal wells; and the preparation, construction, and
maintenance of access roads. Its Well Servicing segment provides
services performed with a mobile well servicing rig and ancillary
equipment, such as maintenance work, hoisting tools and equipment
required by the operation, and plugging and abandonment services, as
well as manufactures and sells work over rigs. Its Contract Drilling
segment employs drilling rigs and related equipment to penetrate the
earth to a desired depth and initiate production.
Take a look at the 1-year chart of Basic (NYSE: BAS) below with my added notations:
Starting in July, BAS declined steadily into December, and from there
the stock started a 4-month, sideways move. During that sideways move,
BAS has created an obvious resistance at $8 (blue). A break above that
$14 level should mean higher prices for the stock, and yesterday BAS
broke that level.
The Tale of the Tape: BAS broke through its key
level of resistance at $8. A long trade could be entered on a pull back
down to that level. However, a break below $8 could negate the forecast
for a higher move and would be an opportunity to get short the stock.
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