Drilling Stock’s Breakout Could Lead to a Well of Profits

Helmerich & Payne broke out of a three-month consolidation range to a new yearly closing high

   

Drilling Stock’s Breakout Could Lead to a Well of Profits

Helmerich & Payne (HP) — This company provides drilling rigs, equipment and personnel for onshore and offshore oil and gas exploration and extraction.

While rising oil prices are never good for consumers who feel the pinch every time they go to the pump, they are good for the oil and gas industry. When crude prices are low, oil companies can only afford to engage in lower-cost exploration and extraction activities. But now that oil prices are climbing again, companies like HP that operate deep-water drilling rigs and other equipment and service packages that are used in more expensive extraction activities are seeing an uptick in demand.

Looking at HP’s chart, the stock just broke out of a three-month consolidation range to a new yearly closing high. Based on the current uptrending resistance level and the renewed bullishness in the stock market, HP could easily make a run toward $130 during the next few months.

06 20 14 hp 300x168 Drilling Stock's Breakout Could Lead to a Well of Profits
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Article printed from InvestorPlace Media, http://investorplace.com/2014/06/trade-day-helmerich-payne-hp/.

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