Thursday, 29 September 2016

RIG - drilling out of the down trend

Whilst the main market settled broadly weak, there was notable strength in energy stocks, as oil/gas prices continued to climb. The oil/gas driller of Transocean (RIG) settled significantly higher for a second consecutive day, +6.1% @ $10.63. Next big upside target is the $13 threshold, after that... the $18/20 zone.

RIG, daily

RIG, monthly


The second sig' daily gain, and perhaps more notably.. the fifth gain of the past 7 trading days, since the Sept' 20th low of $8.68.

RIG is starting to look provisionally strong again, as the downward trend from July 13th ($13.03) has decisively concluded.

Now its merely a case of whether RIG can break above the key $13 threshold before year end, and then hit the 18/20 zone by late spring 2017.

My outlook on oil/gas is bullish into next spring. If that turns out to be correct, most energy stocks - such as KMI, APA, APC, CHK, and RIG, should broadly climb in the months ahead.

Here in London city...

A few drill rigs have appeared...

... but I'd guess they ain't drilling for Oil  :)