Swiber – Lagging behind the big brothers in Offshores?

Trend: Uptrend, 20ma Up, MacD above 0

Support: 1.15 (20ma), 1.10 (50 & 100ma close)

Resistance: 1.22, 1.27, 1.35

Observations:
Candlestick – Black hammer formed
Histogram – Many R. No Bearish divergence
RSI – Around 70%, just came out of overbought. No Bearish divergence
Stochastic –Bullish crossover. Oversold.
Bollinger Band – Trading at mid band.

Conclusion:
Swiber had retraced significantly from its high of 1.27 and is now testing 20ma as support. The uptrend remains intact and it does not show any bearish divergence unlike other offshore counters.
The candlestick formation shows that there could be possible support at 20ma but confirmation is needed because it is a black candle. Only Stochastic shows that it might have limited downside and bullish sentiment might sets in. A small concern is that there is a minor resistance level at 1.22 which there is a possibility of a lower high formation. If it fails to break this level, we must be ready to exit the position.
Hence, we can look at the long side as long as today it trades higher than previous day. That is the key for confirmation of the bullish sentiment. Do establish your ESP calculations before entering this position and also take note that there might be a small possibility of lower high formation at 1.22 level.

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