RIG testing crucial multi-year support
Updated
From February 2011 until November 2016, a major resistance trend line has kept RSI well below 50. In November 2016, there was a minor breakout, which ultimately failed and re-entered bearish territory. Since August of 2017, the RSI has held above this trend line until this month.
After the RSI resistance breakout in late 2017, the trend line has been tested on 3 different occasions for support;
- February 2018
- December 2018
- August/September 2019
We are currently BELOW this trend line, but the monthly still has one full trading week left.
They say the more times a trend line is tested, the weaker it gets. Although I agree whole heartedly with that statement, it truly depends on the area you're attempting to trade. With investor sentiment currently in the toilet due to Coronavirus, there is an extreme amount of fear and a record number of short positions.
This trend line is now very very close to oversold. With price below it, it is in my opinion a very strong buy signal especially if accompanied by a hammer close.
On the most recent successful support re-tests, price wicked below and closed as a hammer, even after strong bearish pressure. Currently, RIG is only 00.08 points away from exactly 30 RSI. SERIOUS bullish RSI divergences are present in the daily, 2D, 2W, monthly, 2M and 3M charts.
There is especially strong bullish divergence in the MACD on all time frames above the weekly.
MACD:
RSI:
Monthly zoomed out
After the RSI resistance breakout in late 2017, the trend line has been tested on 3 different occasions for support;
- February 2018
- December 2018
- August/September 2019
We are currently BELOW this trend line, but the monthly still has one full trading week left.
They say the more times a trend line is tested, the weaker it gets. Although I agree whole heartedly with that statement, it truly depends on the area you're attempting to trade. With investor sentiment currently in the toilet due to Coronavirus, there is an extreme amount of fear and a record number of short positions.
This trend line is now very very close to oversold. With price below it, it is in my opinion a very strong buy signal especially if accompanied by a hammer close.
On the most recent successful support re-tests, price wicked below and closed as a hammer, even after strong bearish pressure. Currently, RIG is only 00.08 points away from exactly 30 RSI. SERIOUS bullish RSI divergences are present in the daily, 2D, 2W, monthly, 2M and 3M charts.
There is especially strong bullish divergence in the MACD on all time frames above the weekly.
MACD:
RSI:
Monthly zoomed out
Note
so angry.5/13
Note
Blast me and my impatience.Note
Update
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