Weatherford International (WFT) has been bottoming on the charts since June. Prices are close to a seven month breakout. Buyers of WFT turned more aggressive in late October so now is a good time to look closer at the charts and indicators.
In this daily bar chart of WFT, below, we can see how a bottom pattern has been playing out since the summer. Volume dried up in August. Prices made a slight new low in October and made a successful retest in November. Dips to $3.25 have been bought and so far rallies to $4.75 have failed. WFT is now above the rising 50-day simple moving average line and above the still declining 200-day line. Volume has been heavier since the end of October and the On-Balance-Volume (OBV) line has been rising which tells us graphically that buyers of WFT have become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in late December for an outright go long signal.
In this weekly bar chart of WFT the technical signals are not as positive as the daily chart. Prices are testing the declining 40-week moving average line. The weekly OBV line is neutral and the MACD oscillator is trying to break above the zero line.
In this Point and Figure chart of WFT, below, we can see an upside price target of $6.93. If prices can rally above $4.83 then $7.00 is not unreasonable.
Bottom line: Aggressive traders could buy some WFT at current levels and add to longs on strength above $4.83. $7 and then $9 are my potential longer-term price targets. A close back below $3.70 upsets the bullish pattern.