Acergy S.A. (ADR) (ACGY)

no doubt the whole world is in need of oil, but there is so much restrictions and debate going on about whether the opening of new rigs is the real solution to the 'energy question', casting a cloud of doubt over the sector.

i foresee that this doubt should be cleared with once the stands of the presidential candidates are made certain; their respective stands and the result of the election would cause a corresponding response in the stock price.

it is important to remember that the opening of these new rigs are the real drivers/expectations of growth, although maintenance does provide a certain amount of revenue, it certainly isnt substantial.

the ability of the companies to clear these backlogs that they have from orders around the world is also being called into question here.

in the short term, i expect the stock to bounce around support and resistance levels of 20-25, with more downside risk.