Monday, May 18, 2015

Hornbeck Offshore Services, Inc. (NYSE: HOS)

Hornbeck Offshore Services, Inc. operates offshore supply vessels (OSVs) and multi-purpose support vessels (MPSVs) in the U.S. Gulf of Mexico, Latin America, and internationally. It provides marine transportation, subsea installation, and accommodation support services to exploration and production, oilfield service, offshore construction, and U.S. military customers. The company owns and operates a fleet of U.S.-flagged OSVs and MPSVs that support the deep-well, deepwater, and ultra-deepwater exploration, development, production, construction, installation, inspection, repair, maintenance, well-stimulation, and other enhanced oil recovery activities of the offshore oil and gas industry. It also operates a shore-base support facility located in Port Fourchon, Louisiana, as well as provides vessel management services, such as crewing, daily operational management, and maintenance activities for other vessels owners.
Take a look at the 1-year chart of Hornbeck (NYSE: HOS) below with my added notations:
1-year chart of Hornbeck (NYSE: HOS)
After peaking last summer, HOS declined for over 6 months, but since December the stock has been trending sideways. During this possible sideways bottoming process, HOS has created a resistance at $25 (green), which is a level that had also been support back in October and December. A break above that $25 level should mean higher prices for the stock.

The Tale of the Tape: HOS has a key level of resistance at $25. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $25.
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