Don't Ignore This Chart!

Cactus, Not The Plant, Is Breaking Out.

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In yesterday's article in the RRG blog, I highlighted the Oil&Equipment Services industry as potentially interesting.

Using the scan-manager to find the members of this industry gives 78 matching results.

[group is OilEquipmentServices]

One thing that we need to take into account when using the scan-manager to dive into industry groups and find individual stocks is that these results are not limited to S&P 500 stocks, whereas the members of the sectors, as I mostly use them on the RRGs, are.

If you want to only limit your search results to include members of the S&P 500 you need to add that as a condition.

[group is OilEquipmentServices]
and [group is SP500]

This scan only shows four results; BKR, HAL, NOV, SLB

Where 78 might be a bit too broad, four might be too narrow. So we can try to tweak that universe a bit by removing the requirement to be a member of the S&P 500 and adding a few other criteria, like turnover, price, etc.

In order to filter out thinly traded stocks, I am adding the requirement that the average traded volume needs to be over 200.000 shares. That brings back the list to 42 names. Still quite a list.

Low-priced stocks can jump up and down, unexpected and uncontrollable. So I am also adding the requirement for the closing price to be above $ 10.

All in all that brings the scan to this

[group is OilEquipmentServices]
and [sma(50,volume) > 200000]
and [Close > 10]

which leads to 21 matching results, shown in the RRG below

Going over the individual stocks leads to some interesting rotations inside the weakening quadrant as well as inside leading.

Especially WHD popped out for me when I brought up the chart at the top of this article.

It is a small-cap stock with limited, but enough to make it meaningful, history available. Since late 2018 WHD stalled and reversed in the broad resistance zone between $ 36.50 and $ 39.50.

That barrier was taken out three weeks ago and the price has held up nicely above that area, which is now expected to act as support in case of a decline.

The break also opened up the way for further upside which is now unobstructed by resistance from old highs or lows.

All in all, WHD now has plenty of upside potential and limited downside risk. Combined with a strong relative rotation this is now an interesting stock to watch IMHO.

#StaySafe, --Julius

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Julius de Kempenaer
Senior Technical Analyst, StockCharts.com
CreatorRelative Rotation Graphs
FounderRRG Research
Host ofSector Spotlight

Please find my handles for social media channels under the Bio below.

Feedback, comments or questions are welcome at Juliusdk@stockcharts.com. I cannot promise to respond to each and every message, but I will certainly read them and, where reasonably possible, use the feedback and comments or answer questions.

To discuss RRG with me on S.C.A.N., tag me using the handle Julius_RRG.

RRG, Relative Rotation Graphs, JdK RS-Ratio, and JdK RS-Momentum are registered trademarks of RRG Research.

Julius de Kempenaer
About the author: is the creator of Relative Rotation Graphs™. This unique method to visualize relative strength within a universe of securities was first launched on Bloomberg professional services terminals in January of 2011 and was released on StockCharts.com in July of 2014. After graduating from the Dutch Royal Military Academy, Julius served in the Dutch Air Force in multiple officer ranks. He retired from the military as a captain in 1990 to enter the financial industry as a portfolio manager for Equity & Law (now part of AXA Investment Managers). Learn More
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