Patterson-UTI Had a Bearish Engulfing Candle

Published on Wednesday, 18 January 2012 04:33 Written by Danny Miller

New York, January 18th (TradersHuddle.com) - Shares of Patterson-UTI Energy, Inc. (NASDAQ:PTEN) ended the trading session lower by $0.7 or -3.67% from its previous close. Patterson-UTI's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) through its subsidiaries provide onshore contract drilling and pressure pumping services to exploration and production companies in North America. Patterson-UTI Drilling Company, LLC has approximately 350 currently marketable land-based drilling rigs that operate primarily in oil and natural gas producing regions of Texas, New Mexico, Oklahoma, Arkansas, Louisiana, Mississippi, Colorado, Utah, Wyoming, Montana, North Dakota, Pennsylvania, West Virginia, Ohio and western Canada. Universal Pressure Pumping, Inc. and Universal Well Services, Inc. provide pressure pumping services primarily in Texas and the Appalachian Basin.

Patterson-UTI's current stock range is defined by calculated support defined at $18.03 and by the resistance level at $22.14, which should be used by traders planning their trades.

Traders wanting to establish a position in Patterson-UTI stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Patterson-UTI shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: