Will Weatherford Follow Other Energy Names Lower?
Energy is the worst performing sector this year, according to TradeStation data. Oil-field servicer Weatherford has bucked the trend so far, but will it continue?
Notice how the May 1 high of $66.52 was lower than the March peak. Combined with the March low below $52, this potentially creates two downside patterns.
First is a falling price channel. Second is a potential ABC correction. Both of those formations could point toward the January low around $47.
Next, this chart includes our MA speed custom script with the default setting of the 50-day simple moving average (SMA). The SMA turned negative in late April for the first time since last summer. That could signal a weakening of the intermediate-term trend.
Finally, WFRD bounced at its 100-day SMA in March. It’s now returned to the same line. However this time, it’s showing much less of a rebound.
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Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
Notice how the May 1 high of $66.52 was lower than the March peak. Combined with the March low below $52, this potentially creates two downside patterns.
First is a falling price channel. Second is a potential ABC correction. Both of those formations could point toward the January low around $47.
Next, this chart includes our MA speed custom script with the default setting of the 50-day simple moving average (SMA). The SMA turned negative in late April for the first time since last summer. That could signal a weakening of the intermediate-term trend.
Finally, WFRD bounced at its 100-day SMA in March. It’s now returned to the same line. However this time, it’s showing much less of a rebound.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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