Nabors Industries Ltd. (NYSE:NBR) gained 2.30% in yesterday’s session, going up from its prior closing price of $7.81 to $7.99, and has now recorded rally in 3 consecutive sessions. Many in the market will be closely watching whether this winning streak is sustainable or take a temporary pause for the next couple of trading sessions. The price has been moving in both directions for this period, and there has been a 2.7% gain over 10-day period. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 1.11 million more shares exchanged hands compared with prior day. In total, 6.25 M shares exchanged hands for about $49.95 million.
Inside NBR’s Recent Trend
Nabors Industries Ltd. (NBR) is the upper part of a very wide and horizontal trend and normally this would pose a good selling opportunity, but a break-up through the top trend line at $8.37 will give a strong buy signal and a trend shift may be expected. Given the current horizontal trend you can expect Nabors Industries Ltd with 90% probability for the price to range between $6.41 and $8.48 in this timeframe. Investors sometime notices large volume spikes after a breaking of the horizontal base, and stocks rarely experience a roller coaster ride from the bottom of a trend. Stocks jumping at a middle end of a horizontal base are therefore followed in search of a potential runner.
Nabors Industries Ltd. Technical Signals
NBR has witnessed its short term MA triggering a sell signal. Meanwhile, however, the long-term average has generated a buy signal. When the short-run moving average rises above its longer-term trend, a buy signal is created. This is because a short-run moving average that crosses its long-run moving average counterpart is seen as the initiation of an upward trend. On additional rally, the share price will meet short term resistance at around $7.99. On a drop, the stock is likely to find some support over the long run, which begins at $7.24. A buy signal will be generated if it crosses above the short term moving average. Meanwhile, however, a price crossing below the long term moving average will generate a sell signal. Its pivot point low generated buy signal on Tuesday October 03, 2017, which calls for additional surge until the stock forms a new pivot point high. There was increase in both volume and price. This is usually interpreted as a good sign as traders widely believe rising stock should see increasing volume.
Nabors Industries Ltd. (NYSE:NBR) Support And Resistance Levels
In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $7.46 and $7.05. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $8.02, $8.13 and $8.30.
It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, Nabors Industries Ltd approaches the first support point just current price at $7.46. In case of a break, the next support we will see from accumulated volume is going to be at $7.05 and $6.47. Accumulated volume is going to prevent the price from rising further at $8.02 and this action will lead the price to take a temporary pause or stay muted for a few days.
Nabors Industries Ltd. (NBR) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.22 between high and low, or 2.82%. The average volatility for the past week stood at 3.03%.