Monday Morning

Gator's Chart of the Day: TDW

I mentioned this stock on Thursday and I still like it as we head into the new week.  Tidewater has now broken the downtrend line as it continues to push on the upper Bollinger band.  The 20 day simple moving average has turned up and will be crossing the 50 day this week unless it has a drastic change in direction.  You can see where the bands got a bit tight in mid June and are now expanding nicely.

Earnings are expected on July 30th but the annual meeting is this Thursday so I would expect news from that gathering.  If you have been looking for an excuse to spend a few days in New Orleans this is your chance and you may even be able to deduct the trip.  (Consult your tax professional.)

The Trade
I would look to take a small position ahead of the company meeting and put a stop back in congestion just under the downtrend line.  News from the meeting and trader's reaction to it would determine if (and how quickly) the position is filled out. I look for TDW to trade back up to the mid 50's as a minimum target but it may pause around the 200 day.  That average was support for all of April.  Any good news for shipping or oil/gas exploration can be a catalyst to move this stock.