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Charts Say Transocean (RIG) Digging a Deeper Hole for Itself

This oil stock is the perfect pick to short

   

Transocean Ltd (NYSE: RIG) got a name — a bad name — for itself due to its role in the Gulf oil spill. Andt a look at the charts show that Transocean stock is a name to continue to avoid in your portfolio now, or to short if you feel comfortable playing the downside.

This international provider of offshore contract drilling services has been in a broad “W” sideways movement since 2008.  Following a major breakdown in April (Head & Shoulders),  the stock plunged to its 200-day moving average at $70.

rig pix Charts Say Transocean (RIG) Digging a Deeper Hole for Itself

But with renewed selling pressure, it is likely that another breakdown could take this stock even lower.  Insiders continue to sell and the stochastic (an overbought/oversold indicator) flashed a sell signal last week.  Those who hold RIG should sell their shares and short sellers could take new positions with a target of $60.

As always, if selling short, protect your positions with stop-loss orders and check with your broker for any special circumstances regarding the short sale of this stock.

Read Today’s Daily Market Outlook – Charts Show Market on the Brink of a Bearish Move.


Article printed from InvestorPlace Media, http://investorplace.com/2011/06/transocean-rig-oil-stock/.

©2014 InvestorPlace Media, LLC

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