RIG breaks below $20

٢ ديسمبر ٢٠١٤

I looked to short RIG last week (28th November) but decided against it due to the shortened Thanksgiving trading week.

I am revisiting it today because I think the opportunity has probably passed - for now. Initially the set-up looked good with yesterday's bar being bearish on higher volume - which boded well for a sell position. But then I noticed the low of 2002 at $18.10 which isn't far from current price action.

2002 is quite some time ago so may not prove to be a strong support level. A quick, small profit could be on the table but for me it isn't worth the risk:reward - the "if in doubt then sit it out" motto applies here.