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Patterson-UTI Energy, Inc. (PTEN) - oil company on a downwards slide


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ISIN: US7034811015

Patterson-UTI Energy Inc. is among the leading US providers of services in the sector of onshore oil drilling. The company owns over 275 drilling rigs for extracting natural gas and oil in Texas, New Mexico, Oklahoma, Louisiana, Mississippi, Utah and in the west of Canada. In addition, Patterson-UTI offers contract drilling, drilling services, consumables and pressure pump services. The companys clients include most of the leading independent oil and natural gas companies.

In the following analysis, we will expand on the companys stock from a chart-related point of view.

Review (daily chart):

The Patterson-UTI stock has been in an intact downward trend since April of this year, a trend which really picked up the pace in particular towards the end of July. Since the last strong downward movement, the stock of the company has now recovered well and corrected almost one hundred percent. Currently, we can already see the first signs that it could go in the direction of the main trend once more, making the stock a potential candidate for the short direction.

PTENday

Outlook hourly chart

In the hourly chart, the currently running correction can be seen, which is still being shown in a sideways phase and has yet to develop in our preferred trading direction.

For a short entry, we should wait for the formation of a signal, e.g. in the form of a P2, and place the stop loss above the last P3 (depicted in green).

Alternatively, and with the advantage of a cheaper stop, one can also practice trading from out of the correction or the formation of a reversal candle at a significant point.

PTENhour

The targets are located in the areas around approx. $15.00, which makes the stock even more attractive for short entries due to the potential down to the first target.

If the price considerably exceeds the last significant high at approx. $21.00, we should abandon the short scenario for the time being (daily chart, depicted in red).

Before trading, one should take news in the environment and from the company into account.

Similarly, one should also observe the development of the overall market.



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About the author


Gilbert Kreuzthaler is the founder and CEO of Include IT GmbH and AgenaTrader. He is responsible for coordinating and managing the development of the highly innovative equity/Forex/options/CFD trading platform AgenaTrader 

He also supervises the strategic element of Include IT GmbH, in order to successfully place AgenaTrader on the worldwide trading market.

With over 25 years of experience in software development as well as requirements and project management, he has a successful history in software engineering for various international companies in the financial industry.

Gilbert Kreuzthaler has held requirements and project management positions with great responsibility at P.S.K. Austrian Postbank, Unisys Austria, Unisys International, Czech Savings Bank and Allianz Austria/Suisse/Germany. 

Between 1995 and 2007, he was one of the architects of the Allianz Business System (ABS), which is currently being implemented as the standard application for all Allianz organizations worldwide.

In the years following, Gilbert managed the development of a wide range of subjects: cars, property, commercial insurance and investment funds.

During these years, he continued to work on the ABS project as a self-employed external consultant with internal leadership responsibilities within Allianz, and was also in charge of heading up all the issues concerning Include IT GmbH.

In addition, he has a profound knowledge of the stocks/futures and Forex markets, and a successful history as a private trader and as a proprietary trader for a NY-based prop trading firm.

After searching for and failing to find a trading platform on the worldwide market that really deserved the term “trading tool”, Gilbert was inspired to combine these major business branches in order to finally create the trading software that the market needs.

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