This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

We are 2 weeks into 2025. Have you found your pace and rhythm?

The US stock market could be more volatile in the near future, thanks to the incoming President of the United States – Donald Trump.

With President Donald Trump and Elon Musk, 2025 will be exciting.

While volatility has begun to expand, this energy stock has been benefiting, and rising in price.

Let’s take a deeper look into this company – Baker Hughes.

Brief History of Baker Hughes

Source: bakerhughes.com

Baker Hughes was formed in 1987 with the merger of Baker International and Hughes Tool Company.

Baker International and Hughes Tool Company were brilliant companies that invented many solutions that revolutionized the energy sector.

Through a series of acquisitions, Baker Hughes expanded its services and grew its expertise.

Today, the company supplies oilfield products, services, and digital solutions.

Does Baker Hughes enjoy good financial health?

Business Model and Financials

Source: tradingview.com

Let me begin analyzing its financial health by analyzing its total revenue (in blue).

By looking at the bars in blue, you can tell that the total revenue of Baker Hughes has been increasing from 2017 to 2019, and from 2022 to 2023. As with many other companies, 2020 and 2021 were extremely challenging years due to the COVID-19 pandemic.

Has the company been making money?

You’ll want to look at its net income (in yellow).

The net income of Baker Hughes has been inconsistent. Since 2017, its net income has increased in 2018, 2021, and 2023, while its net income had fallen sharply in the other years.

As a position trader, should you be very concerned?

I would be more concerned of its price chart. And that’s what we will be looking at in the next section.

Technical Analysis on Baker Hughes (NASDAQ: BKR)

The chart of Baker Hughes’ shares is shown above.

Without the need for technical tools such as trendlines and support and resistance, you can tell whether the time to buy its shares for a position trade is ripe.

How?

By focusing on the main proprietary indicator which I’ll share more soon.

First, let’s identify the price trend of its shares. To do this, you only need to compare the number of blue candles (solid and outlined) against the number of red candles (solid and outlined).

The number of blue candles clearly outnumbers those in red. This means that the share price of Baker Hughes is in a firm uptrend.

This also means that you want to to be on the lookout for a buying opportunity.

Do you remember the 2 main proprietary indicators that’ll help you to determine whether the time to buy its shares for a position trade is here? It’s time to look at them – the green arrow and Trend Impulse Factor.

When the green arrow appears under a candle, it signals that a fresh bullish move is here. Do you see a green arrow under the latest candle of Baker Hughes’ chart?

Next, let’s turn our attention to the Trend Impulse Factor indicator.

When the color of its bar is dark green, it signals that the trend is likely to be sustainable in the near future.

Therefore, you’ll want to see a green arrow and the Trend Impulse Factor’s bar in dark green before buying the shares of Baker Hughes for a better chance of success.

Guess what?

The shares of Baker Hughes are ripe for a position trade!

Conclusion

Source: unsplash.com

Energy plays a critical role in our lives. With innovations, the process of harnessing energy has been made more efficient.

Although energy is largely seen as a basic necessity, energy prices are prone to cyclical and political pressure.

Several stocks in the energy sector are experiencing a bullish wave of momentum, and Baker Hughes is one of them. But to buy stocks that are merely trending higher, without knowing whether the trend is likely to continue, is risky.

Both the arrow and Trend Impulse Factor indicators have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is ripe for a position trade. You won't have to feel in the dark and make wild guesses.

Therefore, you’ll want to consider buying the shares of Baker Hughes for a position trade.

What are your thoughts?

Share your thoughts with me below!