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Ensco plc (ESV) Key Indicators And Emerging Themes

Ensco plc (NYSE:ESV) gained 6.13% in yesterday’s session, going up from its prior closing price of $5.22 to $5.54, and has now recorded rally in 9 consecutive sessions. It is uncommon for a stock to keep rising for so many consecutive days so a temporary pullback is likely. The stock price went upward in 8 of the last 10 days and has generated 19.4% during the last two weeks. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 8.59 million more shares exchanged hands compared with prior day. In total, 17.75 M shares exchanged hands for about $98.34 million.

Inside ESV’s Recent Trend

Ensco plc (ESV) has broken the very wide and falling short-term trend up. Initially a lower tendency for declines in the price is indicated and this might very well be an early sign that a trend shift is more likely to happen in the next couple of days. In case of reaction, the stock will see strong support at $5.15, a point that may provide a 2nd chance needed to hit a runner. The next trend top is most likely to be exhibited at $6.42 will be the next possible trendtop level and thereby pose a resistance level which may not be broken on the first attempt.

Ensco plc Technical Signals



ESV has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of an uptrend. Upon corrections, the price will meet support from the averages between $5.14 and $4.69. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Friday September 08, 2017, which calls for additional surge until the stock forms a new pivot point high. There was increase in both volume and price. This is usually interpreted as a good sign as traders widely believe rising stock should see increasing volume.

Ensco plc (NYSE:ESV) Support And Resistance Levels

Ensco plc (ESV) recorded volume accumulation so there will probably be a surplus of buyers at $5.36. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $5.59 and $5.69.




Accumulated volume is going to prevent the price from rising further at $5.59 and this action will lead the price to take a temporary pause or stay muted for a few days.

Ensco plc (ESV) Risk Assessment

A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.34 between high and low, or 6.45%. The average volatility for the past week stood at 5.27%.

The stock is extremely overbought on RSI14 (83). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

 

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