All drilling stocks are bouncing across the board but Transocean LTD (NYSE:RIG). The stock is under pressure today hitting a low of $46.63. While this seems to be a brutal drop when the other stocks are rallying, it does make this Chief Market Strategist wonder if a bargain can be had here. Since that low was hit early in the day, Transocean has rallied back. The rally back is important to watch as if price rises enough, a bottoming tail on the daily will form. Right now, price would need to rally back to about $50.00 as of the close of trading. Should this happen, a short term low may be in place. The stock currently trades at $48.20 -$1.84 (-3.68%).
While Transocean is under pressure today, a majority of the other drilling stocks are running higher. Stocks like BP plc (NYSE:BP), Halliburton Company (NYSE:HAL), Anadarko Petroleum Corporation (NYSE:APC) and others. This also shows that while Transocean is being hit again today, it may be closing in on a bounce level as well. Watch where it closes today. This will be key. To get more hardcore analysis, guidance and calls, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
