RPC, Inc. provides a range of oilfield services and equipment for oil
and gas companies involved in the exploration, production, and
development of oil and gas properties in the United States, Africa,
Canada, China, Eastern Europe, Latin America, the Middle East, and New
Zealand. The Technical Services segment offers pressure pumping, coiled
tubing, snubbing, nitrogen pumping, well control consulting and
firefighting, down hole tools, wire line, fishing, and fluid pumping
services that are used in the completion, production, and maintenance of
oil and gas wells. The Support Services segment provides a range of
rental tools, including blowout preventers, high pressure manifolds and
valves, Hevi-wate drill pipes, tubing products, production related
rental tools, pumps, diverters, drill pipes, drill collars, handling
tools, and hoses that are used for onshore and offshore oil and gas well
drilling, completion, and work over activities.
Take a look at the 1-year chart of RPC (NYSE: RES) below with my added notations:
Over the last 4 months RES formed an inverse head and shoulders
pattern (green). I have noted the head (H) and the shoulders (s) to make
the pattern more visible. The stock’s neckline resistance was at the
$14 level (blue). RES confirmed its H&S by breaking through the
neckline earlier this week.
Keep in mind that simple is usually better. Had the inverse H&S
pattern never been pointed out, one would still think RES was moving
higher simply because it broke through its $14 resistance level.
The Tale of the Tape: RES confirmed an inverse head
& shoulders pattern. A long trade could be entered on a pull back
down to the $14 level. A break back below $14 could negate the forecast
for a higher move.
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