Potential outside week and bullish potential for NOV

Aug 3

Entry conditions:
(i) higher share price for NOV above the level of the potential outside week noted on 31st July (i.e.: above the level of $0.032).

Stop loss for the trade would be:
(i) below the low of the outside week on 31st July (i.e.: below $0.026), should the trade activate.

Aug 9

Note

UPDATE (week ending 08-Aug): Trade not activated as yet from a technical perspective, as per entry conditions listed above - watch and wait - however, can be taken as a psuedo-crypto play, considering fundamental interests in cryptocurrency holdings.

Aug 17

Trade active

UPDATE (week ending 15-Aug): Trade officially activated the outside week on the daily chart on 14th August with opportunity to enter at decent price (even with the gap-up). Share price has since continued to increase according to a 'gap continuation' effect on the daily chart on above average volume, confirming the move. Charts suggest to raise protective stops to beneath the gap-up at the very least (i.e.: beneath $0.032 from 14th August).

Aug 24

Note

UPDATE (week ending 22-Aug): Price action remained rather constrained over the past trading week ahead of the expected earnings release some time around 27th August (according to TradingView). Interestingly, an inclining ichimoku cloud midway through this upcoming week is noted, which indicates an increase in volatility is expected, which aligns perfectly with the expected earnings release (could this be a repeat of a similar pattern at the end of 2017?). In the context of upcoming earnings, we need to take this 'with a grain of salt' though, since, as I always say, earnings are essentially a 'coin flip' and can be either amazing for the share price, or absolutely appalling - risk management is key for your capital. So, the charts are suggesting to position accordingly and have a plan in place (see last week's comment).

Aug 29

Trade closed manually

UPDATE (week ending 29-Aug): Updates such as this aren't normally performed before the end of the trading week, however with earnings released today this is an extraordinary event alongside indicated enhanced volatility within the daily chart, as noted in an earlier comment. Key statements are contained within Section 10 of the Preliminary Final Report, which indicate potential pain ahead, even though the company has trimmed liabilities over the past financial year (along with their current assets position): "Consistent with the half-year interim report for the half year ended 31 December 2024, the Company expects the audit report will include an emphasis of matter paragraph. This is anticipated to highlight a material uncertainty regarding the Company's ability to continue as going concern and the need to strengthen its balance sheet, which may involve future capital raising, access to debt facilities, growth in sales and remain focused on cost management and/or the sale of non-core assets." Risk management is key - on top of recent possibilities of being able to take a small portion of the trade off when the share price rose, the daily chart (in combination with the earnings report) suggests closing out remaining positions for a small profit overall or scratch trade, depending on entry position.