Company Description: Baker Hughes Incorporated and its subsidiaries supply wellbore related products, and technology services and systems for drilling, formation evaluation, completion and production, and reservoir technology and consulting to the oil and natural gas industry worldwide. It operates in two segments, Drilling and Evaluation, and Completion and Production. The Drilling and Evaluation segment provides products and services used to drill and evaluate oil and natural gas wells. It provides drilling and completion fluids, and fluids environmental services; Tricone roller cone bits and fixed-cutter polycrystalline diamond compact bits; directional drilling services; measurement-while-drilling and logging-while-drilling services; wireline formation evaluation, and completion and production services; and reservoir technology and consulting services. The Completion and Production segment provides products and services used in the completion and production phase of oil and natural gas wells. It primarily offers wellbore construction, cased-hole completions, sand control, and wellbore intervention solutions. This segment also offers oilfield chemical programs for drilling, well stimulation, production, pipeline transportation, and maintenance programs; various process and water treatment programs, and finished fuel additives for the refining industry; and a range of products and services for the pipeline transportation industry. In addition, it provides artificial lift systems, including electrical submersible pump systems and progressing cavity pump systems, as well as permanent monitoring systems and chemical automation systems; and integrated operations and project management services. Baker Hughes offers its products primarily through its sales organizations, as well as through independent distributors, commercial agents, licensees, or sales representatives. The company was founded in 1972 and is headquartered in Houston, Texas..

Our Analysis: The shares of Baker Hughes, Inc. 'BHI' gapped lower on the open of trading on Friday. They finished the day sharply lower on significantly heavier than trading volume. This is a bearish trading signal. The shares of 'BHI' are poised to open lower this morning. I am expecting them to quickly move through support @ 38.04/share. If they do this then my new downside price target is $36.34/share, the point from which they gapped higher on the open of trading on September 11th, 2009. If the shares of 'BHI' close below that level, then my next downside price target is $34.45/share. I have set my stops at $38.43/share.