RIG gaps down on higher volume

28 thg 11, 2014

RIG has been bearish since the 2008 high, so with the last bar gapping down on higher volume a near-term sell opportunity looks like a good play.

Price had been going mostly sideways, since the end of 2012, offering a strong support at around $38. When this was broken and retested (turning support into resistance) in August/September 2014 a new bear trend began to develop. This would've been very early to short this stock so a break of the more recent pivot low of $27.91 offered a firmer opportunity, for longer-term trend traders.

Trading the last bars gap down (on higher volume) offers a near-term sell opportunity - with the next level of support at around $18 -$19. However, I am not looking to enter any trades today due to the US holiday yesterday.