Falling wedge, inverse h&s and possible trend continuation. Good risk reward at this level. Keep a lookout for oil prices too :)
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
The past months we saw a major decline into oil stocks. Now this daily Seadrill chart is looking bullish on the daily chart. Once we can see a daily close above the daily 20 MA we can see some short covering starting. For my exit strategy look at my Youtube coverage. youtu.be
Seadrill has been dropping heavily on the decicion of no dividend this year. But that doesn't mean that the decision was the wrong one. Perhaps it contributes that the company may survive the present low oil price. If sea drilling will have a chance in the future Seadrill will have a comeback. It looks like if the market has overreacted and may recover now.
There are three reasons why I am not looking to take any new trades today. Yesterday was a bank holiday in the US, today is apparently a half trading day, and finally it's the last trading day of the month. To me this means volatility may be affected and I'd rather stand aside than get whipsawed. However, if I were to take a near-term short opportunity the set up...
11-2 Check it out! You gotta love these patterns. Remember a double bottom is a back to the scene of the crime retest of the lows. You want to see the retest of the lows get defended and especially see positive RS Divergence when it happens. As with OAS the same applies to SDRL Notice a theme developing? First off we see what MAY be a double bottom in process....
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
SDRL is near the bottom of a well established, multi-year, channel. Also, SDRL has a nice dividend. just under 9% right now, so it pays to wait