Here's Your Trading on Nabors Industries - Nbr - February 26, 2013

I'm Dan Fitzpatrick at StockMarketMentor.com on February 26th, Tuesday. After yesterday's pretty broad based sell-off we got a bounce today. There are a lot of stocks that I'm covering over in the Strategy Session. But here, in this free video, I want to talk about one stock and that's Nabors ( $NBR Nabors Industries Ltd ), I'll get to that in a second. First of all one of the sectors that bounced, and there were quite a few of them, is the oil and gas sector, particularly exploration and production stocks. What's important to me is not the fact that we got this bounce here, you know you can see these two tails like a long line here, which indicates that the stock traded all the way down there and then it basically ran all the way back; this is called chewing the tail, it's like a long tail cat chewing its own tail meaning, doesn't that sound kind of gross? But anyway, I'm just saying. So what happened is, we came down intraday, and then the selling was done and buyers were saying, "Shoot, I'll take that, it's a good price," and then it comes up. Then we get a move for another day, then we got a big sell-off, and then today, further downtrend, lower low, than this one, before buyers said, "Hey! You know what? This is a pretty good deal down here, I'll buy it." And so now we're coming up here. So I'm looking at this, and yes, I see this lower low and I see this lower high. But as a trader this is what I look for to capitalize on, say this kind of move, you know, even a couple bucks or something like that. Now I'm not talking about a trade on the XOP, I'm talking about a trade on Nabors Industries ( $NBR Nabors Industries Ltd ). This stock has made a really nice bowl pattern here, you can see, just kind of this rounded thing. After a breakout above this level we get a pullback to the 50-day moving average, which is where this has held before. Okay, not so much there, but you can see the 50-day had been resistance here, not so much there. It was support we can go back here. The bottom line is, the 50-day moving average has been very critical with respect to trading levels. Support, support, resistance, support, support, you get the point. So I look at this right now and I see this bounce on about average volume, maybe a little greater than average; I want to go ahead and buy this stock here and just keep a stop just a little bit below that level, and I think that's going to work for you. So anyway, that's it for this video. Now Option Market Mentor Members, I'm going to have a trade for you tomorrow morning on Nabors ( $NBR Nabors Industries Ltd ). I'm not going to tell you what it is right now because my bet is you already know what it is because we've done a few things very similar and they've always paid off handsomely. So I want you guys at Option Market Mentor to check that out tomorrow. We'll be getting back to you on that, everybody else get over to the Strategy Session.