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Cal Dive International, Inc. (CDIS $39.88) is an energy services company with operations in two primary business segments: marine contracting and oil and gas production. Within its marine contracting segment, the Company operates primarily in the Gulf of Mexico (Gulf). It operates the North Sea and Asia/Pacific with services that cover the lifecycle of an offshore oil or gas field. CDI's fleet of 22 vessels and 25 remotely operated vehicles (ROVs) and trencher systems perform services that support drilling, well completion, intervention, construction and decommissioning projects involving pipelines, production platforms, risers and subsea production systems.  The Oil & Gas Field Services group is in the top 8% of IBD's 197 industry Groups, offering nice reassurance it is a leader in a strong group of stocks. 

What to Look For and What to Look Out For: Watch out not to chase it too far above its pivot point. Volatility in the oil/gas group may create ripples and create a nervous environment, but only a failure back into the prior base would be cause for concern.  It may be possible to accumulate shares on any pullbacks occurring on lighter volume.  Losses beyond 7-8% should not be tolerated. 

Technical Analysis:  On September 9th it broke out above its July highs with above average volume, then on September 24th volume really spiked dramatically higher as it advanced. After enjoying a decent rise it then consolidated back toward its 50 DMA it found support, and it also formed a bullish "double bottom" chart pattern.  The pivot point was $38.30, at the top that occurred between the first bottom and the second (lower) bottom of the pattern.