Baker Hughes Stock Trading on Earnings Report Day [TECHNICAL ANALYSIS] (BHI)

Baker Hughes is reporting its earnings report prior to today’s market open. The oil company’s EPS estimate is $0.78, a 16% decrease compared to last year’s actual earnings per share. Yet Zacks Investment Research expects Baker Hughes to have a higher earnings growth than their industry competitors. Baker Hughes stock was trading for $41.75 per share yesterday printing a high at $42.31, which is a new high since May. Baker Hughes share price is predicted to rise at least up to the 200-day moving average, as long as the support level at $37 holds. Besides, a key support level is also found at $35 at the monthly stock graph. The all-time high for Baker Hughes shares was $100.29 back in October 2007, as a part of a triple top formation according to technical analysis.


There are at least two bullish patterns in the daily BHI stock graph. Both RSI and MACD are upward trending as well, indicating traders’ interest to buy Baker Hughes shares. BHI long term moving average is declining though that is regarded as a bearish sign and an indicator of the 12-month downtrend, which halved Baker Hughes share price from $80! A retracement isn’t out of the question, given the Zacks recommendation and the key support levels of the Baker Hughes stock price. Another important price level at the daily BHI stock graph is pointed out at $45, when Baker Hughes share price met resistance during the downtrend and confirmed the level with a pullback in May’s early days.

Personally I wouldn’t rule out a probable long term uptrend that could push Baker Hughes stock price up to the 2011’s highs of $80. While the level at $35-37 range provides the necessary support and no breakout occurs, buying Baker Hughes shares at this price implies a promising risk to reward ratio as far as stock trading concerns.