NOV Inc. (NOV) , formerly National Oilwell Varco, is a provider of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry.
Let's check on the charts and indicators.
In this daily bar chart of NOV, below, we can see that prices made a low in July and a higher low in late September. Prices have rallied sharply in recent days and are poised to break above their August highs. Prices are trading above the rising 50-day and the bullish 200-day moving averages.
The On-Balance-Volume (OBV) line has been positive for the past 12 months and is close to making a new high for the move up. At times the OBV line can lead the price action - this could be one of those times.
The Moving Average Convergence Divergence (MACD) oscillator is crossing the zero line now for a fresh outright buy signal.
In this weekly Japanese candlestick chart of NOV, below, we can see an up and down rally the past three years. The last two candles in September are a bottom reversal pattern. Prices are trading above the rising 40-week moving average line. The weekly OBV line shows us a longer-term move higher. The MACD oscillator is hugging the zero line and poised for a new buy signal.
In this daily Point and Figure chart of NOV, below, we can see a potential upside price target in the $27 area.
In this weekly Point and Figure chart of NOV, below, we can see the same price target as on the daily chart: $27.
Bottom line strategy: NOV should see some follow-through buying in the days ahead but a real breakout may need strength above $22 instead of gains above the August highs. Be patient and wait for two closes above $22 before going long.
