Top Call: Budding, Bullish Technical Setup in RIG

On May 22, we introduced a budding bullish technical setup in RIG (TransOcean Ltd) to MPTrader members, noting:

"RIG (TransOcean) is up 7% today, a thrust that immensely improves the technical position of the stock. RIG exhibits an extremely powerful near and intermediate-term setup that points to a next upside target zone of 6.80 to 7.10, but when overlaid on my attached Daily Chart, projects to 8.50... last is 6.36."

We followed up the next day, May 23, with this:

"RIG is following the very constructive technical script we discussed yesterday afternoon when it was trading at 6.36, bumping up against its prior rally high at 6.39. The 6.39 high has been hurdled and so far sustained today with RIG's intraday new 5-week high at 6.53... Last is 6.52."

Thereafter, however, RIG reversed sharply, but the weakness did not alter our technical discipline which requires patterns to be broken before he abandons his outlook. 

On May 31, with RIG trading at 5.90, I wrote:

"RIG has followed the lead of Oil since we last discussed its promising setup on May 22 and May 23. At the moment, my BIG picture technical view remains unchanged despite the weakness from 6.36 to yest's low at 5.85. That is to say, all of the price action from the March 2023 high at 7.74 represents a bullish digestion period in the aftermath of the bull phase from the Sep. 2022 low at 2.33 to the March 2023 high at 7.74. Although yest's decline weakened the near-term setup, the intermediate-term setup remains unchanged. Key support rests along the 8-month up trendline that cuts across the price axis in the vicinity of 5.82, but beneath the trendline resides important March-May Double Bottom corrective lows at 5.43 and 5.45, trailed by the up-sloping 200 DMA, now at 5.01... Last is 5.90."

Our dynamic chart analysis proved very valuable to MPTrader members who were involved on the long side of RIG and provided a large measure of confidence to members who needed to make an informed judgment about holding or exiting a potentially losing position. 

Fast-forward to this past Friday, I posted the following brief analysis about RIG:

"RIG has recovered sharply from its Mon-Wed swoon from 6.50 to 5.72, now pushing up to 6.48 to challenge resistance that if taken out and sustained, points to 7.00/30 next, en route to 8.40/60... Last is 6.49 as the Oil Sector approaches this weekend's OPEC meeting..."

Friday afternoon, RIG proceeded to climb to a 6-week new high at 6.61, nearly 4% above our initial heads-up on May 22, but more importantly, the stock is poised to accelerate to the upside from a significant breakout plateau that is accompanied by very supportive intermediate-term momentum gauges just days after RIG appeared to be on the verge of a serious price meltdown. 

Our ongoing dynamic analysis and updates kept MPTrader members informed about RIG and is an example of the type and quality work we have been providing to MPTrader members about individual stocks, ETFs, macro indices, commodities, precious metals, and Bitcoin since the site's inception 20 years ago.

Join me and our MPT member community to observe and participate in this coming week's price action in many individual equity names and ETFs that will be reacting to the OPEC meeting, to the Worldwide Developers Conference, as well as to any signals from Fed officials about the likely path of interest rates into and after the mid-June FOMC meeting.

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