Thursday 1 December 2016

RIG, SDRL - drillers soaring

With WTIC oil powerfully higher for a second consecutive day, there was notable strength in energy stocks. Transocean (RIG) and Seadrill (SDRL) settled higher by a very significant 3.6% and 11.1% respectively. Near/mid term outlook is now bullish, with a clear 25/30% upside by mid 2017.

RIG, daily

SDRL, daily


RIG is leading the way... well above key resistance of $13. There is little but empty air to the $18/20 zone. Current price action is threatening an insane ramp to that level within weeks... rather than months. Regardless... it is a bullish break.

SDRL has followed RIG, with a massive break above declining trend/resistance, which is where the 200dma is also lurking. Its a massively bullish break. Next upside is the soft psy' level of $4, and then the April 29th high of $5.21.

Both certainly merit attention into year end.