Weatherford International (WFT) peaked in 2014 and is still in a downtrend, but I can point to a few potentially positive technical clues that suggest a turnaround could be coming for the oil and gas service company.
In this daily chart of WFT, above, you can see prices have been depressed over the past 12 months. Recently, however, WFT has not made a lower low. This may delay, or could be, the first step in breaking the downtrend. It is not out of the woods until it makes a higher high, or rallies and stays above $7. Prices are above the 50-day moving average, but its slope is still negative. WFT is still below the declining 200-day average.
What is really interesting about this chart is the action on the On-Balance-Volume (OBV) line. The OBV line has been moving up from a March low. This is unusual. When a stock is weak, it is relatively easy to buy it -- just stay on the bid side and buy whatever is offered. Becoming an aggressive (read visible) buyer in a weak market would tip off market observers to your actions. Big investors like to keep their purchases quiet for as long as possible. Like I said -- unusual.
In this three-year weekly chart of WFT, above, there is a big decline. Prices are still below the declining 40-week moving average line. The weekly OBV line has come up dramatically, with a dip or two along the way. Momentum on the downside is waning. The weekly chart suggests WFT might need a close above $8 to send the bear into hibernation.