Nabors Industries Ltd. (NYSE:NBR) – Accumulate near $10

Nabors Industries Ltd. (NYSE:NBR), a land drilling and land well servicing contractor, are able to take a breath in 2015 after a massive hammering in 2014 which saw the stock lose nearly 70% of its value in just six months. The drop from the swing high around $30 to the lows of $10 discouraged nearly all the investors but it may be the right time to accumulate some instead of fleeing from it.

Have an analyst breakdown the Bollinger Bands for NBR.

Nabors Industries Ltd. (NYSE:NBR) has reported its last quarterly result this month, that disappointed the market. The earnings per share (EPS) of $0.33 were much lower both than the expected EPS of $0.39 and the EPS of $0.42 marked in the same quarter in the previous year. The quarterly revenue of $1.78 billion, though 11% up on a y-o-y basis, came up short against the expected $1.84 billion. The result brought some selling pressure in the stock but the loss was marginal and it soon found a short term bottom at $11.41.

NBR

Technically, the stock is trading sideways in the range of $10-$14 for the last 3 months and the strong supply from $14 levels must be absorbed before the bulls can extend the bounce and turn it into a rally towards $18-$19. The huge volume spike on last Friday must be noted as that represents 60 million shares changing hands against the daily average of 10 million only. Actually the volume has been higher for the entire sideways phase, suggesting a bit of accumulation by the smart and aggressive money.

The smart investors may have taken note of the long term confluence zone as shown on the chart. The band of $8-$10 has found strong buyers for the last 15 years and the trendline support of the same age just adds to the strength of the support. Investors may accumulate near $10 and add more above $14.

 

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Scott Coper

Scott Coper

Coper graduated from the University of Chicagi with majors in political science and journalism.