Oilfield service giant Baker Hughes (BKR) recently returned to the Green Favored Zone of the SIA S&P 500 Index Report, continuing a relative strength uptrend that started in the red zone in December. On Friday the shared finished in 71st place up 29 spots on the day and up 208 positions in the last month.
Since bottoming out with the overall market back in March of 2020, Baker Hughes (BKR) shares have been steadily recovering lost ground. In October, the shares completed a bullish Ascending Triangle back and rallied to their highest levels since early 2019. After pausing for two months, the shares have come under renewed accumulation this month, advancing on increasing volumes and climbing toward $27.50.
Initial upside resistance appears near $30.00 where a round number and a previous high dating back to late 2018 converge. Measured moves suggest potential upside resistance tests after that may appear near in the $32.50 to $33.00 area. Initial support appears near the $25.00 round number, then an uptrend line near $24.00.
Back in July, a slide in Baker Hughes (BKR) shares ended in a successful retest of $19.00 support. Since then, the shares have been under accumulation, steadily building a new upward trend of higher lows. In October, the shares broke out to their highest level since the fall of 2018 then paused to consolidate their gains. This month, accumulation has resumed once again with BKR completing bullish Double Top and Spread Double Top breakouts.
Initial upside resistance may appear at the October 2018 peak near $30.55, followed on trend by $33.10 and $34.40 which are based on horizontal and vertical counts. Initial support appears near $25.00 where a round number and a 3-box reversal converge.
With a perfect SMAX score of 10, BKR is exhibiting weakness across the asset classes.
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