Thursday, 5 December 2013

RIG - golden cross on a down day

Despite closing -1.1%, Transocean (RIG) still achieved an important golden cross (50MA moving above 200 MA). Near term trend is weak, but if RIG can clear the daily 10MA - currently in the mid $50s, then there is comfortable upside to 53/54 before end year.

RIG, daily


*firstly, I will note, I am currently Long RIG, from $50.07, seeking an initial exit in the 52/53s, but am seeking much higher levels in the mid/long term.

So..a down day..but an important technical achievement, in the form of a golden cross. Certainly, I can't be the only out there noticing that today.

Underlying MACD (blue bar histogram) remains outright bearish, but is starting to tick upward. At the current rate, it will take at least 7-10 trading days for the cycle to go positive.

If the main equity market can see broad upside into late Dec/early Jan, near term upside target is a rather conservative 53/54.

Mid term target is 60/65 by late spring 2014.