Hot stocks to watch this afternoon: GPRO, HAS, MU >>> READ MORE

Stock Just Pennies Away From Breaking Support — Sell Now

Tidewater's recent high appears to have been a buying climax


Tidewater (TDW) — Although this company operates the largest fleet of offshore supply vessels serving the international energy industry, analysts consider its shares to be overvalued compared to its peers. This is due to Tidewater’s emphasis on foreign markets where the risks are much greater than in North America. Although recent quarterly earnings were slightly higher than expected, analysts say that it was due to deferred expenses that will catch up with TDW in the next quarter.

The stock broke from a long-standing resistance line at $51 in April and ran to a high of $61.65. But that high appears to have been a buying climax, and a further fall through support at $55 would provide a target of $48. Sell TDW short with a stop-loss order at $57.50.

TDW Chart
Click to Enlarge

Chart Key

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC