Diamond Offshore Drilling Is Close to the 50 Day Moving Average

Published on Wednesday, 25 April 2012 06:00 Written by TradersHuddle Wire

New York, April 25th (TradersHuddle.com) - Diamond Offshore Drilling, Inc. (NYSE:DO) closed the trading day at $67.91, near its 50 day moving average that is set at $67.39. Diamond's price action is just above this important support level, providing a trading opportunity.

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.

The peaks and troughs algorithm shows calculated support at $63.70 and calculated resistance at $70.30. These levels should also be evaluated when planning trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on Diamond Offshore Drilling should look for evidence of buying near the 50 day moving average, and open this position as close as possible to this important level. Also, they need to consider the latest range defined by the peaks and troughs algorithm for insights on other key levels that might impact an upside or downside move.