SDRL forming a very nice fallen angel pattern with moneyflow divergence. It has broken out the moving averages with huge volume.
We think it has good upside potential from here.
* Trade Criteria *
Date First Found- July 25, 2017
Pattern/Why- Fallen angel pattern
Entry Target Criteria- Break of $0.55
Exit Target Criteria- 1st Target $0.64, 2nd Target...
I like this level going into earnings on SDRL.. We bounced pretty hard at this level in the past and this stock can't go much lower. I'm playing the March 17th calls but you can do the weekly's also. You can buy the stocks but you have to be aware of the gap down. With options you can just buy your risk level.
Click on the 1 minute chart below in the comments!.
During a big run down, CoCoBars nibbled a couple times around 10:10.
Around 10:40 is when it hits on all cylinders, you got CoCoVol showing a large jump in independent volume, CoCoBars showing dark green independent price moves up and the CoCo Trend colors at the bottom turning from red to green.
At 11:26 is...
Stock went down from very high price to $1.57. Consolidation in progress.
This chart show that a good company can have a bad stock... I think this is a corrective movement after hit the $1.57 ATL
Flat to the upside... so, I do give a bigger probability to the ABC correction rather than impusle wave.
This is a daily chart but count based on weekly. Let's see how...
I know you keep smiling when you hear that phrase... We have a nice Cup&Handle Formation of Seadrill targeting 3.90. Different to the October Peak, higher prices are not yet used to sell (maybe will come). So, depending on Crude development in the next few days we may see a similar short squeeze as beginning of the year... But it seems Sentiment for Offshore...
I think it should be self explanatory... Expected a short squeeze already in Sep/Oct, but it seems to start now. Regular Target: 3.70 Region. On Short Squeeze: above 7.50
20% of Seadrill Shares are short ...! That's a whole lot and now it starts to be quite dangerous for short sellers. At about 3.05 - 3.10 the first wave should start ... I would guess.
A definite reversal has occured, it has room for a pull back, facing resistance between 2.71 and 2.96. If the 2.96 is even tested let alone breaks through then this should be fun to watch.
Compared to Brent the whole Offshore Drilling Industry had a miserable "recovery"... Presenting here Seadrill Group in comparison with Brent shows the upward target and the fair value would be around 24 (currently 9). From the chart the correction target from the rising wedge was hit almost on point and we should expect a reasonable upward movement. Remember: Fair...
After having reached my target of 1.92 the recent OPEC production cut will lead to a extremer short covering compared to March. Volume is SURGING! If non OPEC members confirm production cuts we will see SDRL soon above 12-15...
Will be watching price this morning for a potential breakout of the current bull pennant.
Bull's favor:
1. Large buying volume recently
2. Golden cross formed yesterday
3. MACD near a bullish crossover
4. Medium-term trend is currently with us
5. Bull pole/Pennant pattern currently (15 Min)
Bear's favor:
1. Negative divergence in MFI and RSI created...
![SDRL: Seadrill [SDRL]](https://s3.tradingview.com/p/P3ZCHK4P_mid.png "Seadrill [SDRL]")
