SDRL gaps down on higher volume

28 thg 11, 2014

There are three reasons why I am not looking to take any new trades today. Yesterday was a bank holiday in the US, today is apparently a half trading day, and finally it's the last trading day of the month. To me this means volatility may be affected and I'd rather stand aside than get whipsawed.

However, if I were to take a near-term short opportunity the set up on SDRL looks very good. Price as been trading below the 200dma for a coupe of months and the last trading bar gapped down below recent support and also support from the low of 2010. There is some way to go before the next support level. Volume was up on the gap - adding to the likelihood of a continued move down.