Thursday, April 9, 2015

RPC, Inc. (NYSE: RES)

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:
1-year chart of RPC (NYSE: RES)
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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