On Nov. 3, W&T Offshore, Inc (NYSE:WTI) had a mixed reaction to its third-quarter earnings beat. The Stock opened lower but rallied up to close the trading session 3% off the opening price.
- W&T Offshore began trading in a descending channel on Oct. 25 when the stock hit a high of $4.83.
- On Dec. 7, W&T Offshore broke up bullishly from the channel but on Wednesday ran into a resistance level at the $3.75 mark. On Thursday, W&T Offshore back tested a support level at $3.57 and bounced.
- W&T Offshore may be printing a bull flag on the daily chart (pink) in order to consolidate for a move higher. If the pattern is recognized the bullish break should come over the next few days and traders can watch for high volume on lower timeframes to gauge whether the pattern was recognized.
- Traders should be aware there may be a long-term bearish head-and-shoulder pattern on W&T Offshore’s stock. If the stock breaks down from the ascending trendline on high volume W&T Offshore is likely headed lower.
- There is resistance above at $3.75 and $3.93 and support below at $3.57 and $3.40.
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