Inverse Head & Shoulders breakout in Aban Offshore

Aban Offshore on Friday succeeded in giving its long-awaited multiple resistance breakout at 199-200 levels. Considering its daily timeframe, the stock has formed inverse head and shoulders pattern since May 2017 with multiple right shoulders. The breakout is supported by rising volumes and 14-period RSI rising from 64 levels.

Now that it’s a fourth consecutive positive session for the stock, it may witness one more upside in the next trading session or it may witness a pullback of up to 201 followed by 197 levels for a stronger bounce back. The stock has also given a Bollinger Upper Band breakout at 196 levels which further supports consolidation breakout for the stock.

Considering a bigger time frame, the stock had witnessed lower tops lower bottoms after hitting 52-week high at the end of the October 2016. The stock witnessed consolidation thereafter since June 2017. The stock gave a breakout which would also confirm trend reversal in the next weekly session.

Investors and traders who are holding the stock in their portfolio can keep it for now and those wish to buy can enter at current levels or up to 197 levels. The stock has a potential to give 15-20 points upside from the current levels on short-term basis.