Reasons for likely recovery: Fundamental Analysis - NOV suffered under major commerce COVID restrictions' impact on petro use. - NOV is poised to recover with the opening of commerce. Petro sector is critical for both recovery and any developments in the ALT energy sectors. - NOV supplies the equipment to the petro market, insulating it somewhat from the volatility of the commodity swings.
Sentimental Analysis - NOV made a series of small acquisitions that will likely improve revenue. - since NOV supplies equipment its major stock price rebound lags the recent run up in oil prices and will likely follow suit. - NOV under-performance in recent earnings was already priced in and stock prices surged in-spite, a strong indicator of market confidence in future performance.
Technical Analysis - NOV has recently tested its 200EMA, consolidated, and recovered ~21%; - NOV just had a bullish crossover on the STC - NOV also has been beating VWAP in its recent bullish trend - NOV remains ~30% below its pre-COVID levels.
PLAN Entry Price: $14-$15, average down to $13.5 TGT Sale Price: Conservative - $18, Moderate - $22, Final- Set trailing Stop Stop Loss: $12 Max Position Size: 5% of portfolio
Note - NOV hosts weekly OPTIONS. Average in to 100 shares (+). Begin selling weekly CALLs @ 1 Standard Deviation above average purchase price, while collecting modest DIV. Try to sell after 365 for long terms capital gains but do not violate STOP.