WILD BORRBorr Drilling Company has become very cheap once again. Considering the incredible rally in oil over the last year, BORR looks like an even better discount. The price action alone in BORR suggests to me that a bottom is being put in under 0.75. Regardless of my opinion, I have some tools and charts I can use to demonstrate why it is historically cheap and why I believe BORR could be on the verge of a major rally. I will share these ideas below.
Please note that the chart above is using Renko blocks. Currently, TradingView does not allow Renko charts to be 'played' like traditional candlestick charts. Renko is different from candlesticks in that Renko blocks do not 'print' unless price moves a certain defined amount. Time is mostly irrelevant and is only useful for the 'time' required for a block to print. What this does is allow a more pure trend to be identified with the time factor removed. If price doesn't move, a block does not print. What you are left with is PRICE ACTION.
Here is one such way to measure BORR. Because BORR is in the oil business. Just compare BORR to OIL. So for this use USOIL/BORR. Here is what comes of the ratio:
This ratio appears to be topping out and can indicate, as previously seen in cyan ellipses, that BORR could be bottoming in this range. Just know that it doesn't have to work and there's no guarantee of anything. Use what tools are available and think for yourself. Your investing decisions are your own. Do not buy or sell anything based on anyone's advice. Why risk your own money without your own research? Study this for yourself and consider risk to reward.
