Forum Energy Technologies, Inc. (FET) – producers for oil drills digging itself into a hole

ISIN: US34984V1008

The American company Forum Energy Technologies Inc. manufactures special oil field products for underwater, drilling, assembly, production and infrastructure sectors of the oil and gas industry. The company is traded under the abbreviation FET on the NYSE, and has been showing conspicuous weakness for weeks. In combination with the WTI crude oil overall market, an attractive short scenario is conceivable, which we will examine in this technical analysis.

 

stock FET daily chart with targets

stock FET daily chart with targets

 

Significant downward trend, many targets ahead

The daily chart makes it clear – here, the stock has been consistently punished for weeks now; strong, fast southward trend movements follow weak recovery attempts at low volume. On 18th April, the SMA200 was finally broken, and the current correction is generating an opportunity for a short entry.

We have drawn in three attractive targets in the percent area that is already at least into double-digits at the 1st target. In these zones, one should carry out partial sales and hedging.

 

stock FET hourly chart with forecast

stock FET hourly chart with forecast

 

Wait for a clean signal

As visible in the hourly chart, we are hoping for a further correction in order to make the 1st target more attractive. Since the oil industry is very closely linked to politics and news, in values such as these, one should look for more safety and wait for a clear signal. As drawn in, we are waiting for a trend reversal in the subordinate trend in the hour with an entry at a point 2, or from out of the following correction. In accordance with trend trading, the stop management takes place in the hour.

In addition, one should also observe the corresponding overall market before making an entry.

 

commodity WTI crude oil daily chart with trend

commodity WTI crude oil daily chart with trend

 

The daily chart of the oil kind WTI is showing a downward trend in a generally rather sideways chart image. If the trend picks up its movement here once more, we can also expect a trend continuation of the FET stock.

Before making an entry, one should take company news as well as news of the overall markets and the activities of the central banks into account. Particular attention should be paid to the upcoming OPEC Meeting on 25.05.2017 in Vienna, and only after this should one aim for a positioning.

 

Possible trading parameters

Entry: depending on the formation of the hourly trend, between 18-19 USD

Stop: depending on the formation of the hourly trend, above the last hourly high

Target: targets at 15 USD, 12.50 USD, 9 USD

 

 

 

Neither the author nor our company is invested in the securities and underlyings discussed at the time of publishing this analysis.

Disclaimer:

Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.

Forum Energy Technologies, Inc. (FET) – producers for oil drills digging itself into a hole
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