New York, April 24th (TradersHuddle.com) - Shares of Diamond Offshore Drilling, Inc. (NYSE:DO) are trading very close to calculated resistance at $70.30. The stock ended the trading session at just $68.39, which is near levels that make it difficult to buy or start a position.
Diamond Offshore Drilling, Inc. (NYSE:DO) drills offshore oil and gas wells on a contract basis. The Company is a world-wide deep water driller that serves markets that include the deep water, harsh environment, conventional semisubmersible and jack-up markets.
Diamond's stock range is defined by its calculated support defined at $63.70 and by the resistance level at $70.30; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.
Traders don't have a clear entry point for Diamond Offshore Drilling. However, as the stock pulls back towards $63.70 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $70.30 then traders will get an opportunity to enter the stock as it moves to a higher range.