Tidewater Inc. (NYSE: TDW)

Tidewater Inc. provides offshore service vessels and marine support services through the operation of a fleet of marine service vessels. It provides services in support of offshore exploration, field development, and production, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, work over, and production activities; offshore construction, ROV operations and various specialized services, such as pipe and cable laying. The company operates and charters deepwater vessels, including platform supply vessels, and anchor handling towing supply vessels that are used in transporting supplies and equipment from shore bases to deepwater and intermediate water depth offshore drilling rigs, platforms, and other installations; towing-supply and supply vessels for use in intermediate and shallow waters; and crewboats and utility vessels for use in transporting personnel and supplies from shore bases to offshore drilling rigs, platforms, and other installations.

To review Tidewater’s stock, please take a look at the 1-year chart of TDW (Tidewater, Inc.) below with my added notations:

1-year chart of TDW (Tidewater, Inc.)

TDW has been trading sideways for the last 2 months. Over that period of time the stock has formed a clear resistance level at $50 (red). In addition, the stock has also created a strong level of support at $46 (green). At some point the stock will have to break one of the two levels the rectangle pattern has created.

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The Tale of the Tape: TDW has a clear level of support at $46 and resistance ($50). The possible long positions on the stock would be either on a pullback to $46, or on a breakout above $50. The ideal short opportunities would be on either a break below $46 or on a rally back up to $50.

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

Follow me on Twitter: @cmtstockcoach