The sentiment for the drillers at this point is still slightly bearish overall. NE is also perceived as being a little weaker comparing to RIG etc in terms of backlog. That's why I think it has a good change to revisit $6.0 or even lower. The chart is just a reference and could be totally wrong.
The market also needs time to realize oil is going up permanently. Why do you think the Saudis organized the cut (regardless whether you think it could be implemented effectively)? Because they are desperate. Historically, when did this kind of desperation happen? At the bottom of the cycle of course. The Shale is just a financial scam. It works only if share holders keep pumping money into it.
Longs can wait. Bears couldn't. NE could see $20 sooner than you think. My guess is in late 2018.
The market also needs time to realize oil is going up permanently. Why do you think the Saudis organized the cut (regardless whether you think it could be implemented effectively)? Because they are desperate. Historically, when did this kind of desperation happen? At the bottom of the cycle of course. The Shale is just a financial scam. It works only if share holders keep pumping money into it.
Longs can wait. Bears couldn't. NE could see $20 sooner than you think. My guess is in late 2018.
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