RIG, SDRL - drillers remain out of favour

Whilst Oil prices saw another swing to the downside, there was renewed downward pressure as Transocean (RIG) was downgraded by Credit Suisse. RIG and Seadrill (SDRL), settled sharply lower by -6.3% and -6.0% respectively. Near term outlook is bearish.


RIG, daily

SDRL, daily

Summary

The daily moves are pretty interesting... but reflect on the following two nightmarish monthly charts...

RIG, monthly

SDRL, monthly

Seen on the bigger time frame... the drop from summer 2014 has been effectively apocalyptic. There is NO clear sign of a turn/floor yet.

Indeed, if Oil breaks a new cycle low <$43 - which seems highly probable, then the drillers will likely break new lows.

*I have ZERO interest in being long RIG/SDRL until the summer, but given another 5-8 months... they will most certainly be on my long term buy list.