Additional stocks that caught my eye tonight were:
PLCM - Readers may want to launch bullish positions on a move past $51.00.
CRK - Traders might want to buy a dip in the $28-27 zone.
DKS - Wait to see how DKS reacts to NKE's earnings report that released tonight.
CBT & JBHT - A move past the 2011 highs could be an entry point.
NEW BULLISH Plays
Patterson-UTI Energy Inc. - PTEN - close: 27.49 change: +1.34
Stop Loss: 25.95
Target(s): 31.50, 34.00
Current Gain/Loss: unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger
Why We Like It:
The oil and oil service stocks have weathered the recent market volatility pretty well. Shares of PTEN have already broken the very short-term bearish trend of lower highs seen over the last few days. Now the stock looks poised to challenge resistance near $28.00. Given the ongoing violence in Libya and rising worries over the situation in Bahrain and what might happen if things spread to Saudi will all contribute to strong oil prices.
I am suggesting we open bullish positions on PTEN if the stock can breakout past $28.00. We'll use a trigger at $28.25 to launch positions. The $30.00 mark might offer some resistance but I'm targeting a climb to $31.50 and the $34.00 levels.
Trigger @ 28.25
Suggested Position: buy PTEN stock @ 28.25
- or -
Buy the May $30 calls (PTEN1121E30) current ask $0.90
Entry on March x at $xx.xx
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume: 2.8 million
Listed on March 17th, 2010