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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