Use a Pullback to Pounce on Patterson-UTI Energy

by Sam Collins | December 24, 2012 7:11 am

Patterson-UTI Energy (NASDAQ:PTEN[1]) — This drilling services company is one of First Call Network’s most recommended companies. It is estimated to earn slightly less this year than last; however, after upgrading its rigs and modernizing, its long-term contracts have a backlog sufficient to positively impact future earnings.

Technically, PTEN is trading in a bull channel with a bottom in June at under $14. In November, the 50-day moving average crossed above the 200-day moving average — a long-term buy signal called a golden cross.

The stock has been under heavy accumulation and flashed a MACD buy signal in November, so it was placed on our list of Top Stocks to Buy for December[2]. However, it hit the top of its channel and could pull back to the support line at under $17, which is our new buy under price. Buy PTEN as a long-term investment in the energy industry.

12 24 12 pten 300x213 Use a Pullback to Pounce on Patterson UTI Energy
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chart key 300x84 Use a Pullback to Pounce on Patterson UTI Energy

Endnotes:
  1. PTEN: http://studio-5.financialcontent.com/investplace/quote?Symbol=PTEN
  2. Top Stocks to Buy for December: http://investorplace.com/2012/12/top-stocks-to-buy-cci-ebay-iau-kmp-pten-wprt/

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