The last time I covered Nine Energy Services was back in Apri 2022. At the time, the stock was looking like more upside was favoured. Before we get into the charts, lets get a refresher on this company:
“Nine Energy Service, is a nimble completions company with experience in major North American basins and abroad, and a deep commitment to serving clients with smarter, customized answers and world-class resources. Nine is dedicated to qualifying what you want to accomplish, and then developing solutions that fit your project, your budget, and your goals. We believe in being a partner to our client, thinking outside the box and accomplishing what others cannot.
Nine is a leading completion services provider that targets unconventional oil and gas resource development across all North American basins and abroad. Nine brings years of experience into play with a new breed of a company dedicated to helping our clients reach their goals in the most efficient and cost-effective way.”
Lets take a look at the chart from April:
At the time, it did look like the bottom was set, however, in the “middle area” it is important to wait for confirmation. Sometimes, the market was to do a double correction, which in this case, took place. The stock prices did invalid that Red II low, lets take a look at the current idea.
Medium term term view from the low set Dec 28/2021 @ $0.80. Nine is a technically clean chart off that low. Initially, the stock formed a nest in ((1)) ((2)) and blue (1) (2) off that low. After that, Nine broke out into a wave 3 of 3 advance. This took the stock from a low of $1.04 at (2), to a peak of $8.17 at the ((5)) of Red I high. After that, a sharp pullback has taken place while profit taking has occurred. Red II is favoured to have struck a low at 2.35 on April 27/2022. From there, a a choppy advance in ((1)) is favoured to be underway with a few swings left to play out. As long as the recent low at Red II remains intact, the next leg higher is favoured to be underway.