Will ENSCO PLC (NYSE:ESV) See A Trend Reversal?

by Liza Smith | Tuesday, Apr 22, 2014 | 3561 views

Boston, MA, 04/22/2014  (usastockreport) –   On analyzing the weekly chart, the overall weekly trend of ENSCO PLC (NYSE:ESV) is down. The stock had however made an inside bar last week on the weekly charts, which indicates a possible trend reversal from bearish to bullish for the short term. However, the weekly trend would remain down as long as the stock trades below $52.86. Only a weekly close above this level would change the trend back to bullish. Immediate support stands at $48.90 and then at $42.04. Immediate resistance stands at $55.66 which is also the weekly pivot. The next set of resistance stands at $62.52 and $69.00. The Relative Strength Index is at 43.15 and moving up which is a bullish sign. The MACD lines are yet to make a positive crossover. Longs are advisable only once the MACD lines make a positive crossover.

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            (Fig:) Daily chart forENSCO PLC (NYSE:ESV)

The daily charts for ENSCO PLC (NYSE:ESV) indicates that the overall trend is down for the stock. But a bullish reversal looks likely for the stock. The stock had made a bullish hammer on April 17, 2014 which is a strong bullish sign. There was also a doji formed on April 21, 2014. The stock had also bounced back from an important support of $49.28. However, fresh longs are recommended only once the stock makes a daily close above $50.08. The stock also seems to be forming a triple bottom on the daily charts. This pattern would only be confirmed after a daily close above $53.50. The next support as per the daily chart exists at $49.28 and then at $45.78. The daily pivot stands at $51.35 which is a trend deciding level as per the daily charts. The next major resistance stands at $53.50. The RSI is at 45.21 and is flat, indicating that the downtrend has lost the steam. Longs can be attempted with a stop loss slightly below $49.28 as it offers a good risk reward ratio.

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The target price for the stockENSCO PLC (NYSE:ESV) has been decreased from $47 to $45 by Barclays, while its rating has been given as ‘Equal weight’.

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