Tickers in this Article: PTEN
On October 18 we mentioned that the stock price of Patterson-UTI Energy Inc. (Nasdaq:PTEN) was trading near an influential level of support. As you'll see below, this story has changed since our last report so we've chosen to look at the point & figure chart of rather than the candlestick chart because it helps filter out random price fluctuations. 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. Notice how the price has dropped below the $20.25 level since our last report. This breakdown is a technical signal of a move lower. We believe that traders will reverse their bullish position until the price is able to move back above the $20.25 level.