Tactical Portfolio : Sell Twitter – Buy Vale – Buy Schlumberger

 

Twitter : Sold

Profit booked at closing today – USD 18,54 – for a 30,50% profit . Momentum is slowing and reversing after recent after earnings sharp move higher but stock did so far not manage to surpass the USD 19-19,50  resistance zone . Should price go beyond USD 20-20,50 stock technical outlook would improve again. For the mid long term one has to keep in mind that stock remains a potential take over target . We might come back to it on a tactical basis later.

 

Vale : Buy

After a 5o% dramatice surge in the first 6 weeks of the year, Vale had early may nearly retraced this move bottoming at USD 7,84 with 200 days MA as first support around USD 7,75. Price -Momentum divergence appears and MACD is turning bullish . We buy at closing price today – USD 8,36. Vale is very volatile stock and only for « Dynamic – risk conscious  » investors . STOP LOSS below 200d MA i.e. USD 7,5 closing basis.

 

 

Schlumberger : Buy

Technical rationale : 1/ The more than 1 year USD 69-70 support held firmly at recent bottom and stock seems to reverse  2/ MACD turning bullish today  3/  RSI reversing above the 30 level  4/ the final (?) down move since mid april took place in above average volume wich is another potential reversal signal.

Buy at 72,67 // SL 68,50 closing basis.

Transocean (RIG) – USD 11,17 – as same sector alternative and technicals showing same reversal signals but RIG much more volatile than SLB – same remark as for vale … for risk conscious investors and only with tight stops .