Did you know that Nabors Industries ( NBR) owns and operates the world's largest land-based drilling rig fleet and they are a leading provider of offshore platform workover and drilling rigs? The stock has been rallying the past two years but the long-term picture is "interesting," in my opinion.
In this daily bar chart of NBR, below, we can see that prices have broken out on the upside after a sideways consolidation from April to February. Prices are now trading firmly above the rising 50-day simple moving average line and above the 200-day simple moving average line. The trading volume has become stronger this calendar year and confirms the price gains we have seen.
The On-Balance-Volume (OBV) line has been rising since August as buyers turned more aggressive back in the summer. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of NBR, below, we can see an impressive rally the past two years. The breakout over $125 (the top of the trading range/consolidation) is also impressive. Prices are above the rising 40-week moving average line. The weekly OBV line is improving and the MACD oscillator is bullish.
In this long-term chart of NBR, below, we can see two major clues - first, NBR has broken a downtrend from 2014 and second, it has emerged on the upside from a three year base pattern.
In this daily Point and Figure chart of NBR, below, we can see an upside price target of $233.
In this weekly Point and Figure chart of NBR, below, we used a five box price reversal filter. Here the software gives us a $268 target.
Bottom line strategy: Traders could go long NBV on a dip towards $170 risking to $145. Our price targets are $233 and $268 for starters.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
The biggest risk to markets in the coming weeks is the realization that the Fed has already gone far too far, and the economy is rolling over.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.
Email
Email sent
Thank you, your email to has been sent successfully.