Nabors Industries Ltd. declined from $32.47 (U.S.) to $11.05 (A-B), had a recovery rally to the falling trend-line (C – dotted line) and then settled in a bullish technical pattern known as a “W” formation (dashed lines). The rise to $18.12 (D) signalled the breakout from this pattern and the start of a new up-leg. Current levels provide an ideal entry point (E). Support should come in at around $15.50, but only a decline below the 40wMA (40-week moving average – currently at around $14.50) would suggest additional base-building is required.
Point & Figure measurements provide targets of $20 and $23. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.