Transocean stock is bullish above the key moving averages and has positive momentum. It broke out of a bullish flag pattern near a support zone, showing high demand. It may reach $10 soon.
RIG stock has rebounded from its support zone and held it firmly. The bulls have strengthened their position near the $7.50 demand zone which was tested again during the flag pattern. The price is in a bullish zone and may go above $10.
The daily chart shows that the buyers are in control. The bulls have kept the price above the key moving averages all the time. The stock had some setbacks after the earnings but the bulls recovered near the 50-day EMA and continued the long-term momentum after breaking the flag pattern.
Transocean company (RIG) announced a new deal for its ultra-deepwater drillship Deepwater Aquila, which will operate in Brazil for three years starting from Q3 of 2024. The contract is worth $486 Million and it was signed with a national oil company. Transocean also said it will buy out its partners in the joint venture that owns the drillship, which is expected to be delivered next month. The company is exploring different debt financing options to cover the costs of acquiring and preparing the drillship.
RIG stock option-chain analysis states that the current implied volatility in the market is 48.96% with an increment of 1.38% in the last trading session. The at-the-money strike price has 9,584 open contracts on the PUT side and 3,623 open contracts on the CALL side indicating the dominance of buyers at the CMP.
RIG Stock Price Accumulating Buyers to Resume the Trend
The RIG stock price currently trades at $8.31 and is accumulating more buying volume to surge higher. The price trend favors the bulls and retested the 50-day EMA level. The option chain data shows bullish consolidation near the swing high as PUT writers are in domination at the CMP. The breakout to the upside may create an imbalance to the upside and the price may resume with an optimistic trend.
However, the breakdown of the consolidation may add some short-selling volume at the upper levels followed by a drawdown in the stock price.
RIG Stock Price Bounced Back from 50-day EMA
The daily RIG stock price chart shows that the price is trading above 50 and 200-day EMA indicating a strong uptrend prevailing in the stock.
The overall technical opinion rating including RSI and MACD is signaling an 88% “buy” rating with an average short-term outlook on maintaining the current direction. The long-term indicators fully support the resuming of the current trend.
Conclusion
Transocean (RIG) stock engages in the provision of drilling services for oil and gas wells. The price prediction illustrates that the stock is in bullish territory and may reach $10 soon. It broke out of a flag pattern near a support zone and is above the key moving averages. The option chain data shows bullish consolidation and PUT writers are dominating. The breakdown of the consolidation may cause some short-selling volume.
Technical Levels
- Support levels: $7.50 and $6.72
- Resistance levels: $8.811 and $9.75
