Don't Ignore This Chart!

Infrastructure Builder McDermott International (MDR) Builds A Nice Base

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Scanning through the list of new highs this morning, I noticed McDermott International (MDR) had a really nice chart pattern. The stock had an initial thrust off the lows and has quietly built a base supported by the 200 DMA. The 200 DMA was in a downtrend and has a nicely rounded basing pattern that has turned up now. The Relative Strength has made 4-month highs and is very close to making new 1 year highs. Volume is nice with 3.5 Million shares/day.

The MACD has been making a series of higher lows and looks like it wants to stay above zero here. It recently had a positive cross. Today's push to new 52 week highs in price suggests this infrastructure builder has finished the base. Earnings were last night so this is timely. The original reason for the price drop last fall was the amount of work they were doing in the energy sector. Today, they are winning more contracts for energy work with major customers including the State Owned Oil Companies in the Middle East.

This week should have some interesting webinars with commodities breaking down and banks breaking out. Check the What's New section of the home page for the schedule or click here. Webinar Schedule.

Good trading,
Greg Schnell, CMT

 

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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