Nabors Industries Ltd. (NBR) operates the world's largest land-based drilling rig fleet. Nabors is set to report its first-quarter results after the close of trading here on Monday, so let's drill down on the charts to see what they reveal.
In this daily bar chart of NBR, below, I can see a mixed picture. Prices are in a short-term downtrend and trade below the negatively sloped 50-day moving average line and the bearish 200-day moving average. The trading volume has increased since the middle of February and suggests that more traders are voting with their feet. The On-Balance-Volume (OBV) line turned lower in the middle of February and tells me that sellers of NBR became more aggressive, but the line turned flat in mid-March and suggests more of a balance between bulls and bears. The trend-following Moving Average Convergence Divergence (MACD) oscillator is below the zero line and looks poised for a downside crossing and new outright sell signal.
In this weekly Japanese candlestick chart of NBR, below, I see a mixed chart. Prices are trading below the declining 40-week moving average line. The candles show a bottom reversal pattern in March and prices turned sideways for a while, but upper shadows on the candles in early April tell me that traders are rejecting the highs. The weekly OBV line shows weakness from early February. The MACD oscillator is in a bearish alignment below the zero line.
In this daily Point and Figure chart of NBR, below, I can see a downside price target in the $109 area. A trade at $122.47 may be needed to turn this chart positive.
In this weekly Point and Figure chart of NBR, below, I can see a bearish price target in the $51 area.
Bottom line strategy: I don't know what NBR is going to tell shareholders and analysts this evening, but the charts and indicators look neutral to bearish at this point in time. Strength in the broad market averages could precipitate a bounce to the upside.
