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Use a Pullback to Pounce on Patterson-UTI Energy

PTEN hit the top of its bull channel and could pull back to support


Patterson-UTI Energy (NASDAQ:PTEN) — 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. 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.

Trade of the Day -- Patterson-UTI Energy (NASDAQ:PTEN)
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Trade of the Day Chart Key

Article printed from InvestorPlace Media,

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