Monday, May 2, 2016
Oceaneering International (NYSE: OII)
Oceaneering International, Inc. provides engineered services and
products to the offshore oil and gas industry worldwide. The company’s
Remotely Operated Vehicles (ROVs) segment offers submersible vehicles
for drilling support in the oil and gas industry. The company’s Subsea
Projects segment performs subsea oilfield hardware installation and
inspection, maintenance, and repair services. Its Asset Integrity
segment offers asset integrity services to enhance the reliability and
safety of their facilities onshore and offshore, as well as third-party
inspections to customers in the oil and gas, petrochemical, and power
generation industries. The company’s Advanced Technologies segment
offers project management, engineering services, and equipment for
applications in non-oilfield markets.
Take a look at the 1-year chart of Oceaneering (NYSE: OII) below with my added notations:
Over the past 4 months OII has formed an inverse head and shoulders reversal pattern (green). I have noted the head (H) and the shoulders (s) to make the pattern more visible. The stock’s neckline resistance is at the $35 level (red). OII will confirm its H&S if it breaks through the neckline.
Keep in mind that simple is usually better. Had the inverse H&S pattern never been pointed out, one would still think OII was moving higher simply if it broke through the $35 resistance level.
The Tale of the Tape: OII has formed an inverse head & shoulders pattern. A long trade could be entered on a break through the $35 level.
Take a look at the 1-year chart of Oceaneering (NYSE: OII) below with my added notations:
Over the past 4 months OII has formed an inverse head and shoulders reversal pattern (green). I have noted the head (H) and the shoulders (s) to make the pattern more visible. The stock’s neckline resistance is at the $35 level (red). OII will confirm its H&S if it breaks through the neckline.
Keep in mind that simple is usually better. Had the inverse H&S pattern never been pointed out, one would still think OII was moving higher simply if it broke through the $35 resistance level.
The Tale of the Tape: OII has formed an inverse head & shoulders pattern. A long trade could be entered on a break through the $35 level.
The Next Technical Price Targets for Gold & Silver
I have pointed out earlier, gold is forming a possible short-term
top. It is on the verge of completing a bearish ‘Head and Shoulder’
pattern. The pattern is confirmed if gold closes below $1220/oz. The
downside pattern target for this setup is $1138/oz.
If gold starts to rally and breaks out to the upside, then we should see the $1396 level be reached based on technical analysis.
I will open a new long gold position when the time feels right. With technical analysis strongly suggesting gold and silver have bottomed, New breakouts to the upside in metals and mining stocks can be bought.
On the other hand, silver has formed an almost perfect cup and handle pattern and has broken out of it. It has reached its first target objective; chances are that silver will either consolidate or pullback after having met its target or move up to $18.70/oz. levels, which is the pattern target of the ‘Cup and Handle’ pattern formation. However, new buying is not advised at current levels due to a poor risk-reward ratio.
If we take a look and monitor the gold/silver ratio closely, recently, the ratio had touched its resistance of the past 20 years. Every time the ratio has returned from the resistance, the minimum it has retraced is to the levels of 45.
There are no reasons to believe that it will be any different this time around. Hypothetically, if gold were to remain at $1236/oz. and if the ratio corrects to 45, silver will reach $27.5/oz., which is a 62% increase from current levels.
Hence, it is prudent to stay with silver for a better return compared to gold once price has a pause to regroup before the next rally.
How to Trade Gold & Silver Conclusion:
Buying gold and silver offer different rate of returns to the investors. If an investor is able to time both the precious metals, then the total returns will be ‘astronomically high’ in the future.
My timing ‘cycles’ provide signals both for the short-term and the long-term. The price action of both gold and silver along with my cycles have been showing VERY strong “Cycle Skew”. This cycle skew is telling us that precious metals are now in a strong uptrend and is another confirming indicator that support much higher prices long term.
During the first half of a bull market trading price patterns and upside breakouts tend to work very well. Because interest in the sector is growing and more buyers continue to enter that market, price pattern breakouts are the last chance to get a position before price has its next rally higher.
If gold starts to rally and breaks out to the upside, then we should see the $1396 level be reached based on technical analysis.
I will open a new long gold position when the time feels right. With technical analysis strongly suggesting gold and silver have bottomed, New breakouts to the upside in metals and mining stocks can be bought.
On the other hand, silver has formed an almost perfect cup and handle pattern and has broken out of it. It has reached its first target objective; chances are that silver will either consolidate or pullback after having met its target or move up to $18.70/oz. levels, which is the pattern target of the ‘Cup and Handle’ pattern formation. However, new buying is not advised at current levels due to a poor risk-reward ratio.
If we take a look and monitor the gold/silver ratio closely, recently, the ratio had touched its resistance of the past 20 years. Every time the ratio has returned from the resistance, the minimum it has retraced is to the levels of 45.
There are no reasons to believe that it will be any different this time around. Hypothetically, if gold were to remain at $1236/oz. and if the ratio corrects to 45, silver will reach $27.5/oz., which is a 62% increase from current levels.
Hence, it is prudent to stay with silver for a better return compared to gold once price has a pause to regroup before the next rally.
How to Trade Gold & Silver Conclusion:
Buying gold and silver offer different rate of returns to the investors. If an investor is able to time both the precious metals, then the total returns will be ‘astronomically high’ in the future.
My timing ‘cycles’ provide signals both for the short-term and the long-term. The price action of both gold and silver along with my cycles have been showing VERY strong “Cycle Skew”. This cycle skew is telling us that precious metals are now in a strong uptrend and is another confirming indicator that support much higher prices long term.
During the first half of a bull market trading price patterns and upside breakouts tend to work very well. Because interest in the sector is growing and more buyers continue to enter that market, price pattern breakouts are the last chance to get a position before price has its next rally higher.
US Weekly Economic Calendar
| time (et) | report | period | ACTUAL | forecast | previous |
|---|---|---|---|---|---|
| MONDAY, MAY 2 | |||||
| 10 am | ISM | April | 51.4% | 51.8% | |
| 10 am | Construction spending | March | 0.7% | -0.5% | |
| TUESDAY, MAY 3 | |||||
| TBA | Motor vehicle sales | April | 17.5 mln | 16.5 mln | |
| WEDNESDAY, MAY 4 | |||||
| 8:15 am | ADP employment | April | -- | 200,000 | |
| 8:30 am | Trade deficit | March | -$40.3 bln | -$47.1 bln | |
| 8:30 am | Productivity | Q1 | -1.0% | -2.2% | |
| 8:30 am | Unit labor costs | Q1 | 3.5% | 3.3% | |
| 10 am | ISM nonmanufacturing | April | 54.5% | 54.5% | |
| 10 am | Factory orders | March | 0.6% | -1.7% | |
| THURSDAY, MAY 5 | |||||
| 8:30 am | Weekly jobless claims | 4/30 | 265,000 | 257,000 | |
| FRIDAY, MAY 6 | |||||
| 8:30 am | Nonfarm payrolls | April | 200,000 | 215,000 | |
| 8:30 am | Unemployment rate | April | 4.9% | 5.0% | |
| 8:30 am | Average hourly earnings | April | 0.3% | 0.3% | |
| 3 pm | Consumer credit | March | -- | $17 bln | |
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