RIG trade ideas
RIG Important ZonesI expect a retest of $4.00, with a potential test of 3.83 support zone. This appears to be a critical zone.
Stochastic RSI need to reset, which would correlate with the retest areas.
Buy target = $3.83 - $4.00
PT = $7.XX
RIG : Transocean will get this huge bull runs.Transocean Ltd. (NYSE: RIG)
The trend has change lately, Transocean also has attracted the attention of day traders on WallStreetBets..
The stock also has reacted positively to Transocean's agreement with Jurong Shipyard to accept deferred payment on the delayed delivery of two ultra-deepwater drillships.
Their own insider director bought 15% more shares.. this is ridiculous..
As an ex-offshore worker, I do know some of the big whales behind the company (Other company) They just sit tight quietly, and can suddenly buy a new ship or anything in one snap.. just like that.. and sell it back in no matter of time..
Back to the chart, the trend has change positively and resisting to fight back with all the resistance. Along with the demand and oil price are growing back, TransOcean can easily back on track on the upper side. Perhaps in the year 2022 starting May it will on the new HH on the chart.
Foresee it will easily reach $ 6-8 in the nearest months. Will update time to time with this bullish trend.
RIG raising the bar on FibsHad to update my Fib setting today on RIG after this last move. With oil and gas still taking center stage, reopening stocks seem to be pivoting around energy. Still, from a longer-term perspective, there is still plenty of ground to make up from its previous drop.
"At least in the near term, oil and natural gas will be needed to help fuel the equipment & industrial processes needed to create this brand new infrastructure. This is where we see companies involved in everything from oil and gas production to transport becoming a focus in 2021."
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longterm bullRIG will test 7-8$, imho, when these two lines colide, in like september or october. (It's current trend).
Expect some head wind in short term from slower global recovery (variant). It would be hard for XLE to return to where it came from; so that's extremely bullish .
No crap head lines can't change fact that there was underinvestment into oil exploration; thus oil companies focusing on profits first. Opec wants least 70$ WTI (supported by demand) not 50$/ br .
Also think that in short term whole energy sector has tail winds from value (DJI, VTV , industrials , etc) slowing down, and fake out rally in yields. But not in a long run.
Under the hood of RIG with an eye toward 7/16big brain time, fintwit...
How is WISH going to deliver orders without oil and boats or whatever?!
Spoiler alert: they're not.
Enter: RIG (honorable mention: SHIP)
At heart, I guess RIG is an oil play.
As usual I'm going to spare you the deep RIG backstory and assume that you found this idea because you've already done some research of your own.
There's been a lot of insider buying happening with RIG recently and it looks like the chart is in a nice pattern too.
Don't forget, none of this is financial advice and I'm on my second June Shine of this Sunday afternoon. Moving on.
In my perfect genius opinion, a FAVORABLE CHART + INSIDER BUYING reflects positively on the probability of RIG breaking out above 4.80 and fighting for 5.00 before the July 16 options expiry date.
I threw up some options data as well, I probably won't update those numbers past today (Sunday 06/27/21), so do your own DD.
Anyway, you guys are my best friends. Bye.
Rig opportunity, Transocean
'Transocean is a leading international provider of contract drilling services for oil and gas wells. Transocean specializes in the technically challenging sectors of the global offshore drilling business, with a particular focus on deepwater and harsh environmental drilling services, and operates the world’s most high-tech floating offshore drilling fleet.' - ownsnap
Could RIG be a bullish play?
Possibly, predictions in oil demand and rigs is apparently increasing according to news articles aswell as insiders have been gobbling up on there holdings.
Majority of Analysts put it as a hold.
However its important to note RIG is $7.6 billion in depth aswell as the massive move towards clean energy has demonised oil.
Aswell as from as technical standpoint RIG is approaching a seemly steady Fibonacci resistance level.
To further analyse RIG a review on oil as a commodity should be conducted aswell to fully grasps a potential position.
Visualisation data below
Insider data:
Insiders have been lapping up RIG with a total of 5 purchases to a comparison of 0 sales
Insider Historical performance:
Possible Resistance levels:
Fib:
Monthly View
Daily View
TransoceanChart pattern: Cup and handle
Entry: 4.3$
Stop: 3.79$
Target: 5.77$
Risk/Reward-Ratio: ~ 3:1
Stopmanagement: ATR Stops daily chart default settings
RIG Continues In Its ChannelI put this RIG chart together earlier this month and it continues to hold true. No major consolidation just a channel trade with higher lows getting put in. With global shipping becoming a bigger point of interest right now RIG could be one to watch (assuming they don't do something stupid like raise money at a drastic discount).
"the oil demand this year has only started to rise in the past six months. This is a clear reflection of the effects of the pandemic coming to an end. While no one knows exactly when the pandemic will end, it looks like people are beginning to resume travel internationally and domestically. For this reason, many investors are betting on the future of the energy industry. Whether this is enough to make RIG stock worth watching is up to you."
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BreakdownIt appears that the bullish ascending channel has just broken down. I had expected it to fall to the lower end, then move sharply higher towards $5. I see 3 scenarios.
1. It could just keep moving sharply lower.
2. It moves side ways for the rest of the month against the higher trendline of the descending channeling that is being formed, then it either sharply recovers or breaks down.
3. The bullish scenario is it sharply recovers in the next two, assuming tomorrow we sharply above $4
Cup & Handle Formation and TargetRig completed the Cup June 8th which it started forming on March 10th. The Handle is about to get complete and I expect breakout starting next week.
Target on the Chart.
Goodluck Folks. LONG RIG
RIG Channel trading right nowRIG still holding a relatively clear channel right now. I think with the discussion on inflation it could get (and seems to have gotten) folded into the "inflation strength" conversation.
"So, why exactly is Transocean a play for inflation? Well, as stated earlier, energy penny stocks have a great amount of demand to contend with. This demand increase could result in increased financials for the coming periods."
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Oil Play (RIG) Oil price is on the rise. People are out and about travelling for their summer vacations. Estimates predict that the price of oil could climb as high as 80 per barrel this summer.
Oil Play RIGGreat swing candidate right now.
Finished cup and handle
Bounce on 20sma
Bounce on 50rsi
LongBelieve, from here, it could either retest bottom of channel of 3.20-> bounce to rally. Or it consolidates before breaking above (a longterm downtrend); Or big volume, fire power shows up; bullish once breaking above 4.10-4.20 levels. TP at 5-5.20$ range, re-tests 4.20-4.50, before moving higher. Catalyst will be WTI and XLE/XOP markets.
Fundamentally I believe the narrative of "bad oil" will change once technicals align bullish, and whole XLE shows strength; narrative will change to "we still need oil" hence these media analysts hate to look bad/wrong. Once XLE shows strength, people have a very short sighted memory, but we may see soon.
Breakout and pull back...As expected with the strong momentum of oil RIG pushed out of the the consolidation period and broke out. it reached a high of 4.31, and pulled back to the new support level of 3.71, which was previously the resistance level. This is a perfect breakout, and pull back before it takes off. RIght now it presents a great buying opportunity.
Dangers and cons:
The first major con i would say is in relation to the price of oil. Previously RIG had reached a high of 4.9, when the price of oil was at a high of 64, but when OIL hit a high of 67 this month RIG wasnt at a higher price than when the price of oil was lower. This is a big set back in my opinion.
The second danger I see is that the price of oil has pulled back significantly. The price of oil currently lies on support, and appears to have fallen out of the bullish ascending channel. The past few weeks OIL tried to break past the 67 price resistance, but no success. There is strong selling pressure at that level. If the price of oil doesnt recover back soon it could present a really dangerous downside for rig.
The last and major danger to the whole energy sector is the Iran deal. There is significant progress being made in the IRAN deal, although there is barriers that they need to overcome. In the event that the IRAN deal is struck I recommend getting out of all energy companies. The Iran deal is an extremely bearish catalyst, as could be seen in 2014 when the IRAN deal was struck, which led to a massive glut in oil that lasted well over 3 years.
Pros:
The set up is extremely bullish, and inventories where better than expected this week. The Pros are not as big as the cons, but could be a profitable position if the right cards are dealt. RIG moves in big steps, as oppose to steady rises. If no position is held I say the current price presents an attractice price. The second best price is buying above the 4.35, and hopefully catching the next big breakout.
cup and handleas long as WTI heads in right direction, MAs here are slopping up. Price Target 4.70-5$ by mid june. Multiple Resistances.
