Stock Chart RIG

Posted by downtowntrader | 6/03/2008 08:44:00 PM | 1 comments »

Stock Chart Analysis RIG

Transocean Inc. (Public, NYSE:RIG)

Oil and Oil service stocks have been on a tear lately. Many junior oil stocks like MXC and PDO have gone parabolic, and new ones seem to be popping up everyday like ROYL today. In the meantime, it looks like some oil stocks have quietly been under distribution. Often, when a stock trades sideways on higher volume then the preceding run up, it signals that institutions are unloading shares to retail traders. RIG has basically gone nowhere over the past 2 months and may be completing a triple top. It made a marginal new high and quickly reversed. All the indicators were divergent at the top as well. While it's oversold on a near term basis, the reality is, that RIG may be at the early stages of a deep correction. It's tough to spot a top in any market, but RIG is showing several classic traits of a stock that is in a topping process. Another point to consider is that RIG was recently among the Oil Stock Leadership group, leading most of the rallies. It is now a laggard, and could be due for a rough stretch.



Good Trading,


Joey

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1 comments

  1. Abby // 10:03 AM  

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