Fluor Corporation (NYSE: FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. The Oil & Gas segment offers a range of design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, offshore production, pipeline, chemicals, and petrochemicals industries.

The Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors.

The Government segment provides engineering, construction, logistics support, contingency response and management, and operations services to the United States government focusing on the Department of Energy, the Department of Homeland Security, and the Department of Defense.

The Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions.

The Power segment provides engineering, procurement, construction, program management, start-up and commissioning, operations and maintenance, and technical services for the gas fueled, solid fuels, environmental compliance, renewables, nuclear, and power services markets.

To review Fluor’s stock, please take a look at the 1-year chart of FLR (Fluor Corporation) below with my added notations:

1-year chart of FLR (Fluor Corporation)

For the last (3) months FLR has been consolidating within a common price pattern known as a rectangle. Rectangle patterns form when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. For FLR, the rectangle pattern has formed a $67 resistance level (green) and a $60 support level (blue) that had also previously been strong resistance.

The Tale of the Tape: FLR has formed a rectangle pattern. The possible long positions on the stock would be either on a pullback to $60 or on a breakout above $67. The short opportunity on FLR would be on a break below $60.

Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT