Judging BJ Services

BJ Services
(
BJS |
Quote |
Chart |
News |
PowerRating)
,
out of the strong-performing oil
services industry group, is exhibiting signals of recurring strength in both the
fundamental and technical arenas. Numbers released for the quarter ending
Dec. 31 2000 show revenues increasing 38% to $489.7 million, while net
income tripled from $20.5 million to $63.5 million. The chart also appears to be
tracing out patterns signifying possible continuation to the upside. The stock
is in a strong two-month uptrend, as it holds a 3-month
relative strength rating of 90
from the TradingMarkets.com stock scanner and
has gained 60% in value off the December low.

 

 

It is presenting its case for a possible climb higher in the
form of thrusts, pauses and continuations on increasing volume as it has
ratcheted up from the December low. The closing argument may have been the
Jan. 25 breakout from an inverted head-and-shoulders on its biggest volume
day yet. Now it is tracing out a pullback from the 52-week high. Does BJS have
more action to the upside remaining? The jury will be coming in with a
verdict, hopefully favorable, in the not-too-distant future.

Until tomorrow,

Duke