I see rising bottoms and declining tops heading for the wedge of the two directional lines. Something must give. It looks like mid 35s is support if it breaks the 50 and 200 MA.
We need a tool to see what the market looks like two weeks out...
My reasons include seasonality, as the fall months are often volatile, as opposed to the the spring, which is usually more constructive for energy service names. My reasons also include the upcoming Fed unwind, the unending jousting between the House and the executive branch (which seems due to erupt again this fall), and the seemingly endless Euro worries. We've had a half a dozen pretty major (over $4) dips in the chart over the past 24 months, and I'm not seeing why yet another isn't more likely than not. Could I be wrong? Sure.
We'll see, it's undeniable that the fundamentals are good and getting better, but the stock is a cyclical, and the wall street folk sell these guys hard whenever they smell the slightest trouble. Which they do about six times for every time there really is trouble. Therein lies opportunity, I think.
Nice call petro. I still haven't bought any shares back on NE yet. I don't have a target price, but I will buy some NE if the S&P goes down to its 50 day sma, and so far this selloff hasn't accomplished that yet. I think the S&P will bounce there for a rally before ultimately going lower as it shakes out the obvious bounce spot.