Thursday, 8 May 2014

RIG - good earnings, bearish reversal

Transocean (RIG) posted much better than expected earnings, and opened significantly higher at $44.80, but immediately saw a major snap lower, settling -4.1% @ $41.56. Next support is the 50 day MA in the $41.30s.

RIG, 60min

RIG, daily


*I was long RIG, and bailed at the open, at $44.70..which frankly, I was very pleased with. I also bailed on sister driller Seadrill (SDRL), but am still holding Diamond offshore (DO) - seeking 55/56 on the latter.

Earnings were indeed good, yet as ever...sometimes the market simply doesn't care, and we saw some considerable selling across today.

All things considered, despite my exit this morning, I will strongly consider a re-entry (if only for a day-trade), somewhere in the $41.60/30 zone.

If the 50 day MA is broken under, next support is around the $40 threshold.