Last week Friday (Jan. 20) - also a Black Candlestick
Last Friday (Jan. 20), RIG also formed a downward Black candlestick (but without going below the trendline). Then, Jan. 23 - 27, RIG resumed its uptrend. Black candlestick formed on Friday (Jan. 28) but again - this did not go below the upward trendline.
Prediction: They put a lid on it to day, because it was the end of the week. Next week, the climb upwards will continue to $52 - $55 range. Fundamentals have changes, since the the judge ruled in favor of RIG, and BP lost the case.
There seems to be a pattern where the opening price is bid up. This allows the shorts to jump in at that level. Then the price is driven down. The shorts cover and take a profit. You do this every day and at the end of a month you have a 20 % profit on your money.
Isn't the rule prices will not be bid up until every one who wants to or is coerced to sell is done selling.
It seems BP issued a flurry of pro BP spin on the ruling. It appears they were pro active in doing this to keep their price from sliding too much.
Obama wants to now open up more off shore drilling so this has to be good for all oil sector companies.
If I was BP i'd stop the legal uncertainty, buy RIG for ($ 70.00/share)22 billion, settle with the US government and go forward making $$$$$ in the oil business.
I started buying at $ 39.00 and am in at an average price of $ 41.00.
My average price is also $41.25 for the stock itself, but have call options I bought when RIG was $39. Will hold long for the stock, and probably hold the options until I feel the price upwards loses some momentum (but right now - it's not).