SDRL - knocked lower on earnings

Seadrill (SDRL) saw a slight miss on earnings, and the stock was duly knocked lower by -4% in early morning. There was something of a latter day recovery (intra high $36.94), but failed at the Tuesday price gap zone, settling -2.8% @ $36.63


SDRL, 60min

SDRL, daily

Summary

*daily candle was a hollow red 'reversal', it does suggest a possible 'earnings low' is in, but bulls need a break into the $38s to really confirm it.
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Suffice to say, SDRL earnings missed by around 3%, and the market decided that was enough to merit an opening gap down of around 4%.

The oil/gas drilling sector as a whole is on the rise though, and that should help SDRL recover next week. Right now, a break above the 50 day MA - in the upper $37s should be first target for equity bulls.

Any daily close >38, will likely lead to 40/41, and that target zone might equate to sp'2040/60s by late September.

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*I remain long SDRL from the $37.50s, seeking an exit in the 39/41 zone.