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3 Energy Stocks You Should Sell Now

Energy stocks are reeling following last week's oil crash and a bottom may not be in yet

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3 Energy Stocks to Sell: Transocean (RIG)

3 Energy Stocks to Sell: Transocean (RIG)
Source: OptionsAnalytix

Next up is the most volatile of today’s selections, Transocean LTD (NYSE:RIG). The stock is already down 4% right off the bat this morning. RIG shares have followed the descent of their sector, but with a lot more vigor. Since peaking at $16.66, RIG is down almost 30% over the past three months.

Last week’s rebound carried shares of the offshore driller to the declining 20-day moving average. Thursday’s massive bearish engulfing candlestick illustrates just how handily buyers were rejected at this level. With today’s downdraft, RIG stock is now testing its 200-day moving average. Look for RIG to fill its OPEC-inspired gap from late November if the 200-day gives way.

This will take shares down to $11. Buy the May $12 puts for 90 cents.

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Article printed from InvestorPlace Media, http://investorplace.com/2017/03/energy-stocks-sell-bhi-rig-apa/.

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