Stock Chart Analysis GLF
GulfMark Offshore, Inc.(Public, NYSE:GLF)
Oil stocks got crushed Friday, with many oil service stocks dropping over 4%. With oil down over 3%, it looks like this group may be in for a rough start to the week as well.
GLF is an interesting chart in this sector, because while it is down fairly sharply over the past few weeks, it is also very close to breaking a support level. Looking at the chart for GLF, there are a few well defined areas of interest, that clearly show levels of support and resistance. Initially in late February, GLF broke down and quickly reversed higher, forming a V bottom and setting a bear trap that caught short sellers off guard. GLF almost doubled in about a month following the new low, and then trading in a tight sideways base. It broke out of that base in June, but quickly failed the breakout, this time catching the bulls off guard.
GLF is now back in that tight base, and threatening to break lower. A breakdown from this area could easily lead to a test of the V bottom breakout near $21. While, I'm not a big fan of shorting stocks that are oversold, but I will be watching this one to see how it deals with this important level.
Good Trading,
Joey
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