Trading Idea - Key levels for Diamond Offshore Drilling

Published on Monday, 30 August 2010 07:24 Written by Christian Paolinetti

New York, August 30th (TradersHuddle.com) - Shares of Diamond Offshore Drilling, Inc. (NYSE:DO) are trading very close to calculated support at $57.76 with current price action closing at just $60.00 places the stock price near levels where traders will start paying attention.

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 current stock range is defined by current calculated support defined at $57.76 and by the resistance level at $63.32, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Diamond's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $63.32 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.