timwest

BHI base formation 10%-16% upside, 6% risk

NYSE:BHI   BAKER HUGHES INC
560 5 2
Basing action under $49 per share reveals a decent bottom pattern. The last two declines from the $52 area show a pattern of declining volume , which alerts me to a strengthening, accumulating stock . As the price lifts back up here it will need to get some volume going to confirm a bigger rally to the $55-$58 level and it will take some time to get through that level, perhaps as long as a month. BHI             has been lagging the group a bit, but this rebound back to $50 today may be the sign that the bottom is in. If you can be patient, it would be ideal to be able to enter at the $49 level. What I am considering is to sell the $50 strike put options for March for $1.75, which would give me a 3.5% return for a month or a $48.25 entry if the stock is put to me. I like my odds at $48.25 especially given the strength in the price of crude oil             .
By: Technical Tim, Fri             , Feb 17, 2012, 4:27PM EST
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Completely agree. I'll follow this idea. Good luck Tim.
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good for now
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lucask
4 years ago
Nice presentation and well mapped out. Let us see what the future has in store, if not a pullback by the market to upset this plan.
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