Tides Are Not in Transocean’s Favor

by Sam Collins | May 8, 2012 1:40 am

Tides Are Not in Transocean’s Favor

Transocean (NYSE:RIG[1]) — On Aug. 4, 2011, with the stock at $54, the Trade of the Day[2] identified a breakdown in RIG’s chart and recommended selling with a target in the mid-$40s.

RIG hit that area in October, and then proceeded to form a bottom. But the rally ran into trouble in March at $58 and has been in a channel down ever since. Last week, it failed to penetrate its 50-day moving average, and on Thursday, fell under its 200-day moving average.

Sell RIG at the market or use bearish option strategies. The downside target is $38 to $40.

05 08 12 rig 300x192 Tides Are Not in Transocean’s Favor
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chart key Tides Are Not in Transocean’s Favor

Endnotes:
  1. RIG: http://studio-5.financialcontent.com/investplace/quote?Symbol=RIG
  2. Trade of the Day: http://investorplace.com/2011/08/transocean-rig-a-stock-getting-drilled/

Source URL: http://investorplace.com/2012/05/trade-of-the-day-transocean-nyse-rig/
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