Stock Chart PDE

Posted by downtowntrader | 4/07/2009 11:31:00 PM View Comments

Stock Chart Analysis PDE
Pride International, Inc.(Public, NYSE:PDE)

I noticed today that PDE was close to multi-month highs and made a note that I would check it out this evening. While I'm not too crazy about buying late cycle stocks at this point, I have to admit that some of these drillers are looking intriguing. PDE clearing a pretty long and healthy consolidation after a steep decline, and while it's too early to say a bottom is in place, there is still plenty of room for this to run too. A move back to the declining 200 day moving average is approximately 20% away, and would make for a decent trade if it was left at that. A 50% retrace from the top to the November low would be around $30.00 and is not out of the question, even assuming that this is simply a bear market bounce.

I drew some trendlines on the chart below to show how PDE has a history of clearing resistance and then coming back to test it a few sessions later. I would expect a similar pattern to continue if PDE does clear the $20.50 area. A pullback to the green trendline followed by a reversal pattern would also be an attractive entry for this stock.

Good Trading,


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