RIG is a short idea headed into this week. The stock, first chart below, gave up all of its earnings gains on heavy sell volume late-last week, and is now in danger of weakening to break down from the bearish descending triangle (light blue lines). In particular, weakness below $47 and especially $46 is likely to place too much pressure on that well-defined support which buyers have defended many times–The more support is probed, the more likely it is to give way. I would discard this short idea if the stock makes a move above $51.
WWAV is a long idea. The heavily-shorted stock is consolidation with a relatively tight “handle” pattern (arguable a massive cup and handle bullish setup in play on the daily chart, second below) under well-defined $19.50 resistance, the horizontal light blue line. It is hard not to see a sharp short squeeze breakout if buyers can make a move up through that level. I would discard this long idea below $18.40.
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