There are signs that NYSE:SDRL may be ready to breakout.

We've identified SEADRILL LIMITED (NYSE:SDRL) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NYSE:SDRL for further developments.

Technical analysis of NYSE:SDRL

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, SDRL scores 7 out of 10 in our technical rating. This is due to a decent performance in both the short and longer term time frames. Compared to the overall market however, SDRL is a bad performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• SDRL is currently making a new 52 week high. This is a strong signal. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month SDRL has a been trading in the 45.24 - 50.72 range, which is quite wide. It is currently trading near the high of this range.

For an up to date full technical analysis you can check the technical report of SDRL

Why is NYSE:SDRL a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:SDRL scores a 10 out of 10:

SDRL has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 49.20, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for SDRL in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:SDRL be traded?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NYSE:SDRL and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.