Helmerich & Payne, Inc. engages in the contract drilling of oil and gas wells. It provides drilling rigs, equipment, personnel, and camps on a contract basis to explore for and develop oil and gas from onshore areas and from fixed platforms, tension-leg platforms, and spars in offshore areas. The company operates through three segments: U.S. Land, Offshore, and International Land.
Take a look at the 1-year chart of Helmerich (NYSE: HP) with the added notations:
HP has held a key level of support at $65 (green) for the past 4 months. One can see that that level has been tested once in November, and again in early March. Now that the stock has fallen back down to that support area again, traders probably could have expected yesterday’s bounce. However, if that $65 support level breaks, lower prices should follow.
Join our new Linkedin Group by clicking the link below:
The Tale of the Tape: HP has a key area of support at $65. A trader could enter a long position near $65 with a stop placed under the level. If the stock were to break below that support a short position could be entered instead.
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!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach