JimVanMeerten (47.28)

Transocean buy signals

June 28, 2011 – Comments (0) | RELATED TICKERS: RIG

Complete article


This morning I was searching on Barchart for stocks that had glowing fundamentals but were selling at a deep discount and noticed Transocean (RIG) selling at almost 25% off its recent high.  The stock hit 17 new lows and is 24.99% off its 3 month high.

Barchart technical indicators:

1 - These indicators signal current short term negative price momentum.  If the underlying fundamentals are sound, negative price momentum can signal great long term buying opportunities

2 - 72% Barchart technical sell signal

3 - Trend Spotter sell signalBelow its 20, 50 and 100 day moving average

4 - 17 new lows and 24.99% off its recent 3 month high

5 - Relative Strength Index 38.56%Trades at 61.57 which is below its 50 day moving average of 67.796

Summary:  Sometimes good things happen to those who wait and if you play Transocean (RIG) correctly you could make around 18% -22% total annual return over the next 5 years.  The stock is currently experiencing a negative price momentum and only a fool will try to predict how long that will continue.  If you have it hold it, if you don't place a buy stop at the 50 day moving average and reposition that stop lower each week that the negative price continues.  When it finally triggers you will have added a stock to your portfolio that both professional and individual investors predict will beat the market and bought it at a steep discount.

Jim Van Meerten is a Marketocracy Master