Looking for a Short Idea for a Market Pullback? Drill This One
- Posted by Greg Harmon
- on October 31st, 2013
Atwood Oceanic, $ATW, the drilling company has a sick looking chart. Not sick like a 20 year old would say but ill. Take a look.
The chart shows that Atwood Oceanics is in a falling channel, perhaps a wedge, that began when it peaked August 8th. It is now sitting on a support zone from 52.50 to 53.25 that has been important many times in the past as noted by the arrow. It is also hovering around a 38.2% retracement of the move higher from April to that August high. If this breaks that support zone there is strong support next at 50 near the 61.8% retracement and then 49 with a possibility to fall to 44 if that does not hold. Short interest is only 6% so the risk of a squeeze is muted.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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