Tuesday, 24 December 2013

RIG - breaking the down trend

Whilst the main market trended higher across Nov/December, Transocean (RIG) has slipped around 15%, from the $55s to $47.00 last Friday. The Christmas Eve close, +2.0% @ $48.12, is a reasonably clear break from the down trend. First upside target is 51/53.

RIG, daily

RIG, weekly

RIG, monthly


It has taken a fair bit longer than I expected, but RIG has finally appeared to put in a floor of $47.00 - the Friday quad-opex low, and now we're headed higher..back into the 50s.

Relative to the main market, RIG remains bizarrely valued.

see: key stats @ Yahoo finance

Based on the price action in the past few years, I'd have to assume RIG has a reasonable chance to ramp into mid January.

Near term targets: 51/53, then a test of the 55 high.

Mid-term: 75/85, by late 2015.