Thursday 2/21/2024
My two picks both rallied today
Patternson PTEN is the largest owner or work over rigs in Texas.
It rallied 2.77% today.Notice the four Fibonacci based Moving Averages are all coming together. This action usually precedes a further rally and change in trend, that would be to the upside,
PTEN gaped up Nov 7 on the Trump rally and Drill Baby Drill. Since then it has tested the break out at 8.10 and today found new buyers.
The weekly chart looks even better.
PMO looks to give a buy signal as one MA moves over another. The MAs are flattening out which is necessary to form a bottom.
PTEN is trading at 89% of book value, RIG for a mere 36%. OTEN traded for 3.37 X book value just one year ago. Haliburton and SLB look much the same cdhart wise but trade for $32 and $44.
OMG I just looked at the options on PTEN, this is incredible someone or someone are making a really big bet on PTEN with over 20,000 call options at $8 and $9 for May expiration
RIG
And there is interest in RIG options..Note the big interest in $5 and $69 calls.
Crude Oil
WTIC ended near the top of the daily range. It rallied from the recent low on Monday when it had to do so.
XLE the energy service ETF has really soared, up over 2% today, note the last three days of trading. But it costs $97. My choices offer far more leverage and the ability to accumulate many shares at a lower price.
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