Transocean (NYSE:RIG), the international provider of offshore contract drilling services, broke in August from a head and shoulders top. The stock plunged below its 200-day moving average at $70 but attempted to consolidate between $65 and $60.

That attempt failed this week when the company reported a bleak Q2 result which was hurt by a decline in utilization rates, lower backlog and higher operating costs. The stock is gapping down under heavy selling pressure. Sell short since there is little support until the mid-$40s.

Read Sam Collins’ market outlook: Two Choices for Stocks are ‘Bad’ or ‘Worse’