SDRL - another look A great longer term buy and hold stock in general (in my opinion)
This is another time to be more bullish than bearish.
SDRL
SDRL Day Trade Retest Gap (Feb23,2015)SDRL expected to open at 11.83 for a Retest Gap. Watch out for nearby pivot. To learn to trade this strategy for free go to www.RealLifeTrading.com
A bit more downside to comeThere's a strong support for oil at $37.72 and I believe that will be the bottom in the coming months.
It is only bouncing given the extreme oversold condition and that does not change the fundamental fact of an over supplied oil market and many more that are stored in offshore tankers. I highly doubt the long term log trend in black will hold. (Temporary bottom of $47)
At this point you wouldn't want to be shorting, other than waiting for an opportunity to long once the confirmation is in.
UWTI USO SDRL XLE
Transoceans Timewindow.The stock is certainly in a longer downtrend. A Turnaround is to early to tell - Even though, it can be time to start looking at a longer term Long position in the stock. Looking at the timecycles "Low to Low" from 2004 - present, It seems to come in a cycle Low every 76 to 81 weekly bars or every 500 to 550 days. We might now be at week 77 from an earlier Low. The chart shows the different Low points.
The RSI indicator is presently seldom this extremely low at 7.5. Low RSI readings in December of 2008, June of 2010, December 2011 sparked impressive advances. Time will show if this instance comes in to play again with a low around x-mas time of 2014 or maybe aleady in place 2 days ago..
SDRL Breakdown?Possible downside to SDRL...
- Break of the neck line in the H&S pattern coupled with a break of the upward channel at the same spot
- Big volume making this move
- Pink lines are Fib levels from the downward move from the head of the H&S pattern (possible support/resistance)
- Blue arrows show possible price movement
