by Sam Collins | May 8, 2012 1:40 am
Transocean (NYSE:RIG) — On Aug. 4, 2011, with the stock at $54, the Trade of the Day 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.
Source URL: http://investorplace.com/2012/05/trade-of-the-day-transocean-nyse-rig/
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