K.I.S.S. Can RIG hold THE trend line?Since the beginning of 2010, there have been 5 rejections of a MAJOR RSI trend line on the 3 month big boy time frame, which closes soon.
A successful breakout finally occurred on the 6th attempt.
From the start of the trend line until the point of breakout between Janury and April of 2018, this has held as resistance for just under 8 YEARS STRAIGHT.
3 Monthly candles so far since have closed almost directly on this line, showing buyer support:
The monthly shows an interesting situation. In March, the RSI dipped well below this trend line, but was rejected at entering oversold.
After the oversold rejection, there was another attempt to break back above the trend line. It was rejected:
HOWEVER.
The last monthly was able to close a higher low in the RSI.
The weekly chart is showing that RIG is still above that trend line, but very close:
The daily rose beyond this trend line, but fell back below and has confirmed it as resistance.
This insinuates there is likely still more downside to come yet:
Interestingly, the daily RSI rejection of this trend line also coincides with my mock bear flag on two seperate occasions as shown:
After price fell below my mock bear flag, there was one more test of support and then a nearly 400% rise thereafter.
Not saying this will for sure happen again but it is most definitely worth noting.
To give even more credibility to a possible bounce here:
Histogram and MACD divergence:
3D showing the RSI is now directly on the trend line:
Some positive news:
seekingalpha.com
I'm looking for a liquidity hunt in the mid 80 cent region and buying a small amount of shares there.
If there is serious volume behind the move, this could potentially dump much lower than that.
My shares *will* be a long term hold.
