McDermott, Transocean Gushing Along With Crude Oil

THE STREET

Oil-services stocks have mixed performance against crude oil.

Here’s the weekly chart for Noble.

Courtesy of MetaStock Xenith

Noble shares trade around $7, down 36.4% year to date and in bear market territory 51.7% below its March 7 high of $13.90. The stock is in bull market territory 45.6% above its Nov. 2 low of $4.61.

The weekly chart is positive with the stock above its key weekly moving average of $5.90 and well below its 200-week simple moving average of $20.03. The weekly momentum reading is projected to rise to 48.84 this week up from 38.13 on Dec. 2.

Investors looking to buy Noble should consider doing so on weakness to $5.49, which is a key level on technical charts until the end of 2016. Investors looking to reduce holdings should consider doing so if the stock rises to $9.55, which is another key level on technical charts until the end of 2016.

Here’s the weekly chart for Transocean.

Courtesy of MetaStock Xenith

Transocean shares trade close to $15, up 19.9% year to date and in bull market territory 93.5% above its Feb. 24 low of $7.67.

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The weekly chart is positive but overbought with the stock above its key weekly moving average of $11.88 but well below its 200-week simple moving average of $27.85. The weekly momentum reading is projected to rise to 81.28 this week up from 75.24 on Dec. 2, moving above its overbought threshold of 80.00.

Investors looking to buy Transocean should consider doing so on weakness to $12.98, which is a key level on technical charts until the end of December. Investors looking to reduce holdings should consider doing so at $27.85, which is the 200-week simple moving average.

Here’s the weekly chart for Tidewater.

Courtesy of MetaStock Xenith

Tidewater trades around $3.50. The stock rose above the “option on survival” price range of $1 to $3, after a low of $1.50 set on Oct. 31. The stock is down 48% year to date and in bear market territory 70.3% below its March 7 high of $11.58. The stock is now in bull market territory 129.3% above its Oct. 31 low of $1.50.

The weekly chart is positive with the stock below its key weekly moving average of $2.63 and is still well below its 200-week simple moving average of $31.43. The weekly momentum reading is projected to rise to 41.15 this week up from 29.41 on Dec. 2.

Investors looking to buy Tidewater should consider buying weakness to $3 as an “option on survival.” Investors looking to reduce holdings should consider doing so if the stock rises to $5.31, which is a key level on technical charts until the end of 2016.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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