Patterson-UTI Energy Inc
Today we've chosen to look at the point & figure chart of Patterson-UTI Energy Inc. (Nasdaq:PTEN). This type of chart is used by traders to filter out random price fluctuations and is a strategic method for identifying major levels of support and resistance. Point & figure charts are constructed by using a number of columns that consist of a series of either stacked Xs or Os. A column of Xs is used to illustrate a rising price, while Os represent a declining price. As you can see from the chart below, the $20.25 level has been able to prevent a sharp move lower in the past. Technical traders will use this price history to confirm that the trend is not reversing. We'll keep a bullish outlook on the stock until the bears are able to send the price below $20.25.