RIG, SDRL - drillers breaking new lows

With WTIC Oil seeing major net weekly declines of -9.9%, energy stocks were again weak. Transocean (RIG), and Seadrill (SDRL) closed significantly lower by -4.7% and -6.2% respectively. Outlook into the spring/summer is exceptionally bearish... both stocks could fall a further 50%.


RIG, daily

SDRL, daily

Summary

*the daily charts are interesting.. but just reflect on the giant monthly cycles..

RIG, monthly

SDRL, monthly

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*Best guess... Oil breaks the January low of $43, and if so.. next downside target zone is $35/30 into the spring.

If correct, then all energy stocks are going to get trashed into the spring. Even though RIG and SDRL are already lower by around 75% from last summer, both stocks could still get cut in half from current levels.

**I have confidence in both companies across the longer term... but for now... I am more than content to merely watch them in what is freefall mode.