RIG Chart Oversold from Head & Shoulders Break ( Buy )

RIG DAILY CHART

Hello Traders, as you guys know there has been a flurry of investors rushing to pick up some energy stocks on the back of the news from the HK Buyout. Some of these stocks should have been on your watchlist regardless of the news for key reasons and we will take your through how we had RIG as a buy on Friday. Rig was a buy on Friday for the following reasons:

• Extended from the Head & Shoulders pattern that formed from the beginning of the year and broke down in April. SN: We tried to position ourselves in puts but got stopped out.
• Market was trading choppy to down and RIG was holding double bottom from the most recent price action
• Downtrend is Rig was broken and came to backtest the breakdown and bounced right off of it
• Never broke below $60 whole number( as in held below )
• OIH was showing relative strength compared to market
• Stock was gapping up above key levels on the intraday charts on Fridays pre-market action with volume

So all in all there was no reason that you should have not had this on your watchlist unless you don't follow energy stocks. As you guys should know I trade alot of commodity stocks and I know most of them like the back of my hand. That is good because I already know what my go to stocks are when I see a bid coming in the energy sector. In any case, know your stocks and be able to recognize bullish price action.