Thread: National Oilwell Varco Inc. - NOV

I may be the only trader that bought today. I pulled the trigger on NOV. National Oil Well Varco. NOV was only apptozomately 1% of my portfolio and it is now about 3%. I am considering this a Natural Gas play as I feel it has bottomed for the fall of 2008. Crude has a little ways to go, but it was time for me when NOV was 13% down on the day. Way under valued

Well you are a pretty brave guy in my opinion...the stock is very very bearish by the charts...let me show you

Here is the Sharpchart:NOV - SharpCharts from StockCharts.com

The first thing that jumps out is the sharp negative drop of the 50dayMA which is about to negatively cross the 200dayMA....this is never a good sign for a rebound.

The bollinger bands tightened a bit at the beginning of the month and the stock price looked nicely positioned but the bottom fell out and the stock plummeted losing about 1/3 of its value and the bands are still widening with the share price hugging the lower band...not a good sign.

The RSI is in the gutter, the TRIX is negative with a negative slope and the Accum/dist has a negative slope and is below its 20dayMA...definitely bearish.

Here is the long term view with the P&F chart



Whoa!!! the share price shows a double bottom breakdown and it has crashed through a major support level of $52.00...the next support level is a way down there at $35.00!!! The $52.00 now becomes a resistance level with secondary resistance at $57.00....long term is not pretty.

Here is the 5 day Yahoo linechart



Well it had a rough ride this morning (Sept 16) but seems to have recovered a bit. I think this stock will fall a lot further before any recovery takes place.

It may be undervalued, but so are so many energy stocks. All I can say is: Pray for a very cold winter".

Great call on NOV yesterday, up 7% today on a huge bullish engulfing candle off the bottom, seems your technical analysis was spot on! Great work and hope to see more like it.

Originally Posted by raythemoneyman

I may be the only trader that bought today. I pulled the trigger on NOV. National Oil Well Varco. NOV was only apptozomately 1% of my portfolio and it is now about 3%. I am considering this a Natural Gas play as I feel it has bottomed for the fall of 2008. Crude has a little ways to go, but it was time for me when NOV was 13% down on the day. Way under valued