Diamond Offshore Drilling Broke Support

New York, May 15th (TradersHuddle.com) - Shares of Diamond Offshore Drilling, Inc. (NYSE:DO) closed the trading session at $61.67 below calculated support at $62.79. The stock broke long setups, prompting the bulls to worry that this move might give the bears the upper hand.

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 was trading in a well defined range with support at $62.79 and resistance at $69.97; given that this range was broken traders will be closely monitoring the stock's price action for clues of direction.

From a technical perspective, it can be expected that previous support becomes resistance, as the new range gets defined. However, $62.79 will remain in focus as Diamond's price action places the stock near the broken support. Traders will be waiting to see if it can bounce back and return to its previous range.

Traders wanting to establish a short position in Diamond Offshore Drilling can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $62.79. However, if traders want to build a long position, the best entry point to do so is when the price action takes the stock back to calculated support.



Related Partner Headlines

    JIM CRAMER wants to work for YOU. JIM does the research -- YOU get email alerts each time he trades. JIM provides access to his actual portfolio -- YOU can use it to guide your portfolio strategy. Try Jim's Action Alerts PLUS for FREE!

    TradersHuddle Search

    Stock Search:


    Site Search:

    Loading

    Recent Trading Ideas

    Latest Partner Headlines

    Stock Market

    Loading
    Chart
    o Dow Jones 17,619.51 ▲23.16 (0.13%)
    o S&P 500 2,063.11 ▲5.47 (0.27%)
    o NASDAQ 4,986.87 ▲28.40 (0.57%)
    INDEXDJX:.DJI

    Dow Jones

    Company ID [INDEXDJX:.DJI] Last trade:17,619.51 Trade time:4:42PM EDT Value change:▲23.16 (0.13%)
    INDEXSP:.INX

    S&P 500

    Company ID [INDEXSP:.INX] Last trade:2,063.11 Trade time:4:42PM EDT Value change:▲5.47 (0.27%)
    INDEXNASDAQ:.IXIC

    NASDAQ

    Company ID [INDEXNASDAQ:.IXIC] Last trade:4,986.87 Trade time:5:15PM EDT Value change:▲28.40 (0.57%)
    Copyright © 2013 TradersHuddle.com. All Rights Reserved.