Diamond Offshore Drilling Is Close to its 200 Day Moving Average

Published on Monday, 14 May 2012 05:52 Written by TradersHuddle Wire

New York, May 14th (TradersHuddle.com) -Diamond Offshore Drilling, Inc. (NYSE:DO) closed the trading session at $62.74 near its 200 day moving average set at $62.73. Diamond's price action is just above this key support level, grabbing traders' attention for a possible 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 latest price action range, defined by a peaks and troughs algorithm, places calculated support at $62.79 and resistance at $69.97. These levels will provide insight for the stock's latest price dynamics.

Traders wanting to establish a position on Diamond Offshore Drilling will look for evidence of buying near the 200 day moving average, before opening the position as close as possible to this key technical level. Also, they need to consider the latest range defined by the calculated support and resistance levels for insights on other key levels that might have an effect on future price movements.