Taking a play on the drop in Crude Oil prices and potential geopolitical uncertainties with a put sale in RIG which appears to be in a long term consolidation pattern Looking to sell a 52d 10 put for .64 to .68 this week
I am an oil bull fundamentally and technically speaking. In this forum, I shall stick to technicals and I see a wave 4 completion with a double bottom at the 61.8% retracement level off high volumes. Assuming a 1:1 extension off the 3rd wave, I would expect an upside price objective of $16, +c.26%.
Timing: Pay attention with this explanation: The first week of February the Dow Jones dropped 1,175 points and the major indexes too.
When a situation like this happen is a good opportunity to buy stocks at discount but not intermediately Not the next day or the next week,
it is necessary to wait a few months for things to calm down.
If you look the SP 500 for ...
This is a follow to my posts from Jan 3 and Feb 8 (please see links below). Now have a big up day and a positive reversal in the daily RSI. Very encouraging. WTI another offshore stock also up a lot today. Take a look at these and process your way.
Here is one view of the fundamentals.
RIG-is looking good for a long play...short-term it is crossing over on the MACD and with US drilling news from the US govt....Offshore RIGS are on the move.
I look at this level for 1 and 2 year leaps at this price with targets of 15, 30 and 45 over the next two years.
Complete your own assessments and conduct your risk profiles. My chart and plan are my own ...