Boston, MA, 04/22/2014 (usastockreport) – Key Energy Services, Inc. (NYSE:KEG) has been in a strong up move right from the time it hit the intra-day low of $7.96 in the beginning of March. The stock has formed an upward sloping wedge on the daily charts and has tested the lower end of the wedge a couple of times in the past. The strong move that we saw yesterday was on the bases of strong volumes which confirm to us that the stock would head higher and test the upper end of the wedge in the near future.
Key Energy Services, Inc. (NYSE:KEG) currently trades above both its 50 day and 200 day moving averages which is a bullish sign. Along with that, the stock is also seeing a very bullish momentum indicator which is indicating the strong up move in the stock going forward. The relative strength index for the stock is also exhibiting inherent strength, thereby confirming our bullish stance.
The weekly charts for Key Energy Services, Inc. (NYSE:KEG) show a bullish breakout above the $9.06 levels and we believe that the next target for the stock would be nearer to the $10.50 levels which is also the 200 day weekly moving average for the stock. Both the MACD and RSI for the stock are showing upward momentum and confirm to us that the upward bias that we currently have is in firm territory.
(Figure): Daily chart for Key Energy Services, Inc. (NYSE:KEG)
Key Energy Services, Inc. (NYSE:KEG) was upgraded from a sell to a strong hold by the research team at TheStreet.com. The research team believes that the headwinds for the stock and the sector are a thing of the past. The ratings team also upgraded the year end price target for the stock to $9 and believes that even though the stock has outperformed the S&P, there are no reasons that warrant a sell on the stock at current levels.