With oil prices rising, it is surprising to see an oil producer taking a hit. Baker Hughes (BKR) fell sharply Thursday after the company provided updated 2026 guidance incorporating its acquisition of Chart Industries. While the combination is expected to significantly increase revenue, investors focused on a weaker-than-expected profit contribution from Chart and near-term pressure on margins. Chart’s projected EBITDA contribution came in roughly 13% below Wall Street expectations, raising concerns about how quickly the acquisition will translate into stronger profitability. The disappointing outlook overshadowed the longer-term benefits of the deal and triggered heavy selling in BKR shares. Here is the chart and the key levels to watch.

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The news sent BKR down 6.66% to $59.40, producing a significant technical breakdown. The stock fell decisively below its 8-, 21- and 55-day moving averages, while PPO turned bearish and negative momentum accelerated. Directional movement also deteriorated, with -DI climbing above +DI, indicating sellers have gained control. BKR now has initial support around $58–$57, with the rising 233-day moving average near $56.77 providing another important support level if the decline continues.

Wishing you the best,

Wendy