ENSCO PLC (NYSE: ESV)

Ensco plc provides offshore contract drilling services to the oil and gas industry worldwide. The company operates through three segments: Floaters, Jackups, and Other. The company owns and operates an offshore drilling rig fleet of approximately 74 rigs, including 9 drill ships, 13 dynamically positioned semisubmersible rigs, 6 moored semisubmersible rigs, and 46 jackup rigs. Its drilling rigs are located in Brazil, Europe, Mediterranean region, the Middle East and Africa region, and the Asia Pacific rim region, as well as in the North and South America regions. The company also offers management services on rigs owned by third-parties. It serves government-owned and independent oil and gas companies, as well as independent operators. Ensco plc was founded in 1975 and is based in London, the United Kingdom.

Please take a look at the 1-year chart of ESV (Enso, Plc.) below with my added notations:

1-year chart of ESV (Enso, Plc.)

With exception to a few moves here and there, ESV has traded mostly sideways since August of last year. During that period of time, you will notice that the stock commonly reacts to the $60 price. That price has been resistance (red) on multiple occasions and back in January it also acted as support (blue), just as it has a couple of times here recently.

The Tale of the Tape: ESV tends to react to $60. A trader could enter a long position at $60 with a stop placed under the level. If the stock were to break below that support a short position would be recommended instead.

Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT