Like many equities, Hornbeck Offshore Services (HOS) has rallied sharply off of a potential double bottom earlier this month and now finds itself underneath some overhead supply. The $25 level was the scene of an early January breakout and had supported HOS throughout the first half of the year and could now be setting up as a key area of resistance. Just above this level, we find all of its long term averages converging and turning downwards. While HOS has the potential to squeeze higher with the rest of the markets, watch for reversal candles around this level as a signal for a high probability short opportunity.
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