This Heavily Shorted Oil Stock is Breaking Out

posted in: crude oil, Energy, oil stocks | 0

We are starting to see some very constructive bottoming patterns among individual energy names. One name in particular that we have had an eye on in recent weeks broke out on heavy volume from a head & shoulders bottom pattern today:

RIG_Daily_2.9.2015

With RIG shares down more than 60% in the last 6 months and with over 30% of the float shorted, shares of RIG have substantial room to run to the upside. Open gaps from November up at $23.27 and $25.31 make for reasonable short term upside targets.