Five Star Stock Watch: Weatherford International Ltd.

The company: Weatherford International Ltd.

Ticker Symbol: WFT

Sector: Basic Materials

Industry: Oil & Gas Equipment & Services

Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. It offers artificial lift systems, which include progressing cavity pumps, reciprocating rod lift systems, gas lift systems, hydraulic lift systems, plunger lift systems, hybrid lift systems, and wellhead systems.

The company also provides drilling services, including directional drilling, Secure Drilling services, well testing, drilling-with-casing and drilling-with-liner systems, and surface logging systems; and well construction services, such as tubular running services, cementation tools, liner systems, swellable products, solid tubular expandable technologies, and inflatable products and aluminum alloy tubular products.

Please take a look at the 1-year chart of WFT below with my added notations:

Over the last 12 months WFT has consistently moved higher. Since March though, the stock has formed a nice trendline of support. Always remember that any (2) points can start a trendline, but it’s the 3^rd test and beyond that confirm its importance. Obviously WFT’s trendline is important to the stock since it has been tested on multiple occasions over the last (8) months. 

Weatherford is set to release quarterly earnings

No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!