Helmerich & Payne Is Drilling for Lower Share Prices

From the June zenith, HP has quickly retreated to break below the 50-day moving average line.

Helmerich & Payne (HP) is a provider of drilling solutions with operations around the world. A sell-side fundamental analyst has raised their opinion on HP to "buy" from "hold" while another company cut its price target. Confusing.

Let's check the charts and indicators for hopefully a clearer direction.   

In the daily bar chart of HP, below, we can see how the shares quickly soared with rising oil prices from December to early June. From the June zenith prices have quickly retreated to break below the 50-day moving average line. Now prices are close to a retest and maybe a break of the rising 200-day moving average line.

The trading volume dried up into the May-June high and has increased during the June-July selloff period. Increasing volume on a decline is not a positive message as traders are voting with their feet, so to speak.

The On-Balance-Volume (OBV) line shows weakness from March. The Moving Average Convergence Divergence (MACD) oscillator is bearish. 

 

 

We are not encouraged by this weekly Japanese candlestick chart of HP, below. Prices are correcting their prior advance and are edging closer to a test of the rising 40-week moving average line.

 

The weekly OBV line shows weakness the past two months or so. The MACD oscillator has crossed to the downside for a take profit sell signal. 

 

 

In this daily Point and Figure chart of HP, below, we can see a potential downside price target in the $32 area. 

 

 

 

In this weekly Point and Figure chart of HP, below, we can see a price objective in the $21 zone. 

 

 

 

Bottom-line strategy: There are a lot of really smart fundamental analysts out there but if the charts do not support their conclusions I go with the charts. HP looks vulnerable to further declines. Avoid the long side of HP.

 

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