Patterson-UTI Energy, Inc. (NASDAQ:PTEN) fell by -4.43% in Wednesday’s trading from $16.25 to $15.53 and has now fallen 11 consecutive sessions. The price has fallen in 10 of the last 10 days and is down by -21.09% over the same course of time. Volume has increased in Wednesday’s trading by 1.55 million shares, but on a weak note. This is may be an early warning and the risk will be increased slightly for the next couple of days. In total, 5.62 M shares exchanged hands for about $87.21 million.
Inside PTEN’s Recent Trend
Patterson-UTI Energy, Inc. (PTEN) has broken the wide and falling short-term trend down. At first, a heavy selloff is imminent, but false breaks and sharp decline may occur. However, an additional loss is possible and any progress toward the breaking point ($16.29) will be a new exit point. According to the fan-theory $12.37 is considered to be the new bottom line of the next trend, but it is not the time to say this for sure.
Patterson-UTI Energy, Inc. Technical Signals
PTEN has witnessed its long term and short term MA triggering a sell signal. Many traders watch for long-term averages to cross above short-term averages to signal the beginning of a downtrend. Upon corrections, the price will meet resistance from the averages between $16.74 and $19.26. A buy signal will be generated if it crosses above any of these levels. Its pivot point high generated sell signal on Wednesday July 19, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity. Volume up and price depreciating is getting our attention as this movement is seen as bearish sign.
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Support And Resistance Levels
There is no support from accumulated volume below today’s level and given the right condition the stock may perform very badly in the next couple of days. In case of gains, the next resistance from accumulated volume will be at $16.87, $19.18 and $19.27.
Patterson-UTI Energy, Inc. (PTEN) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.86 between high and low, or 5.56%. The average volatility for the past week stood at 3.46%.
Patterson-UTI Energy is overbought on RSI14 (10). Some stocks may go long and hard while being overbought on RSI, but overbought increases the general risk as higher volatility could be expected, and at some level the stock will have a reaction back to gain new strength.