Driller
A level for Diamond Offshore drilling accumulationKey reasons for taking a position:
Triple RSI divergence, with lower low price made for every higher highs in RSI
Velocity of the crash is getting steeper by the day! 77 degrees
Price is close to the 2003 support lows.
Take your time in building a position gradually over time, as I'd still want to wait for the final indication to go all-in for a confirmation of a reversal.
Keep a look-out for the dollar-normalized volume indicator (price X volume). This indicates the general interest in the stock regardless of price level, as a higher price leads to less stock being traded.
Take-profit level is set at 0.236 fib retracement level, or the falling trendline since 2008 peak relative to the start of oil crash.
>> Be prepared for the price to hit $11, the IPO level. I'd advise not to risk over 10% of your portfolio, although there's a low probability of it happening but it is still possible.
Good luck! And stay objective, don't let your bias dictate your positions.
I trade technically, fundamentals do not matter much to me as they often lag behind what's already happening. Human sentiment dictates the price more.
