Nabors Industries Ltd. (NBR) has been drilling out a base pattern the past 12 months (see the first chart below), and now looks ready for an upside breakout. Let's do some of our own drilling into the charts and indicators this morning.
In the daily bar chart of NBR, below, we can see a well-defined saucer bottom pattern. The neckline of the pattern could be $8.50 or $9.00 but no matter where you decide to draw it, it looks like NBR is ready for an upside breakout. NBR is above the rising 50-day moving average line and the flat 200-day line. A bullish golden cross of these two averages can be seen.
The daily On-Balance-Volume (OBV) line starts an uptrend in late October just about at the halfway point of the base. The Moving Average Convergence Divergence first crosses above the zero line in a sustained way in December in the middle of the base pattern.
In this weekly bar chart of NBR, below, we can see that prices are above the flat 40-week moving average line. The weekly OBV line made a low in December and has improved from there. The weekly MACD oscillator has just crossed above the zero line for an outright go long signal.
In this Point and Figure chart of NBR, below, we can see that a trade at $9.00 will be bullish and open the way to a $14.00 price target.
Bottom line: NBR is poised for an upside breakout. Traders could go long here and above $9.00. Risk below $7.50 and look for $14 as our first upside price target.
(For more on oil, see Jim Cramer's: Oil's Rise Shouldn't Be a Surprise -- And Don't Look for It to Stop)