In the past few sessions Patterson-UTI Energy's share sharply fell but the stock is presently coming back to a significant support level.

The energy company keeps good fundamentals with low valuation levels and increasing profitability. Moreover, analysts consensus regarding the target price is set at USD 31.7 on average, which represents a huge gain potential.

Technically, the stock is currently oversold and is trading in a mid-term bearish trend. In the short term, this trend is reversed after contact with the USD 20.27 area. The stock should be able to confirm its rebound in further sessions. This long term support means a trading opportunity in order to anticipate a technical rebound toward USD 22.51 and by extension toward USD 26.30.

Therefore, the proximity of the USD 20.27 level is an opportunity to take a long position in Patterson-UTI Energy. The first goal is a return in the USD 22.51 area, then the USD 26.305 resistance. However, a stop loss order should be placed under the support currently tested, to avoid bearish losses.