- Oil States International Inc. won a contract for its MMR system.
- Oil States International revealed its outperforming Q3 report on Friday.
- OIS stock closed at $7.99, with an increase of 9.00% in the last intraday session.
Oil States International Inc. (OIS) won a contract for its Merlin Deepsea Mineral Riser system (MMR) on September 15, 2023. The company seeks to harvest seabed minerals, including cobalt, manganese, nickel, and rare earth elements.
The MMR system is fast to deploy and suitable for all environments up to depths of 6,000 meters. It is a completely hands-free system and can be run from a control cabin due to its automation capabilities. The MMR system will increase the company’s productivity in its mineral harvesting operations.
Q3-2023 Report Of Oil States International Inc.
Oil States International Inc. announced its third-quarter financial report on Friday, October 27, 2023. The Q3-2023 report data shows outperforming results, with a revenue and earnings surprise of 2.34% and 66.67%, respectively. The reported EPS and revenue are $0.07 and $194.28 Million, respectively, which exceeds the estimated figures.
The unexpected results encouraged the market buyers and the price downplayed all the exponential moving averages (EMA). Hence, the stock price surged about 9.00% during the intraday session. Moreover, the OIS stock price is currently hovering above the 20, 50, 100, and 200-day EMAs, indicating solid strength in the market. However, the traders gained about 9% after the release of the quarterly report.
Currently, the OIS stock price is hovering near the $7.99 mark, which bounced from the low of the $7.20 mark. The sudden spike pumped a gain of roughly 15% or $0.79. However, the sudden move by bulls troubled the market bears, as the recent move challenged the bearish dominance.
On the higher timeframe, the OIS stock price observed an uptrend after attaining the annual low at $6.25, constantly forming higher highs and surging about 42% over three months. However, the move was halted after the release of the lackluster second-quarter report, which melted the price by roughly 20% on July 27, 2023.
The Q2-2023 report shattered the previous profits into losses due to the bearish sentiment in the market. However, after that, the price was stuck in a consolidation zone ranging between $8.11 and $7.20. This later led to a dominance by the bulls, and the price bounced back to $8.90 but failed to retest the previous $9.00 resistance level.
Will the Bullish Sentiment Sustain?
The OIS stock price defeated the prolonged downtrend in the last intraday session. Hence, the move flexed the relative strength index (RSI). The RSI bounced up from the 30 mark towards the score of 54.09, which denotes sudden strength in the market.
The Chaikin Money Flow (CMF) score stands at -0.26, suggesting solid weakness, and the price might melt towards the $7.20 mark. On the contrary, if the bulls’ stronghold sustains, the price might surge towards the $8.90 resistance level.
Conclusion
The market structure and price action of Oil States International Inc. stock are still indecisive according to the current scenario. However, the recent surge provided the OIS stock price with the needed recovery. Traders should look for buying opportunities as the technical parameters suggest the same.
Technical Levels
Major resistance: $9.02 and $10.47
Major support: $6.23 and $6.36
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.