SubSea7 (Norway): New Downtrend

Pressure within the European Oil&Gas Sector is paramount. Virtually everywhere stocks are tanking or showing flimsy holding patterns at best. SubSea7 has been a big outperformer within the sector, but that seems over now. Prices have set a new lower peak below the previous consolidation pattern. Cloud support has been taken out to the down side and, as mentioned before, sector weakness is widespread.

We expect a decline towards minimally 92.10 (pattern projection). Below this level some pivots of 2015-2016 could give some support around the 85-zone. In either case considerable down side risk. Avoid all long exposure. Trading short-entries are justifiable with initial stops above ~121.50.

Primary trend: negative
Outlook: new down trend, negative
Strategy: avoid or trading short-entry
Support: 106.70 / 92.10* / 85-
Resistance:  121.50 / 124 / 134.50+
Outlook cancelled/neutralized above 121.50

CHXEUR:SUBCO