by Sam Collins | June 20, 2012 1:09 am
Transocean Ltd. (NYSE:RIG) — On May 8, when the stock was trading around $48.50, the Trade of the Day identified a breakdown in its chart and recommended selling with a downside target of $38 to $40.
On June 5, RIG hit our target with a low of $39.32, reversed, and recovered back to the bearish resistance line within a channel down. Then the stock flashed a bearish “death cross” in mid-May, had declining volume on the recent rally, and momentum is now overbought.
Sell RIG short at $45 or higher. The downside target is $39 to $39.50. As with all short sales, check with your broker for special margin requirements. Short-selling by its nature is a speculative technique. A buy stop order should be entered at $48 to protect against potentially unlimited losses.
Source URL: http://investorplace.com/2012/06/trade-of-the-day-transocean-ltd-nyse-rig/
Short URL: http://invstplc.com/1nCWOGt
Copyright ©2014 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.