#DO potential bullish breakout set upDiamond Offshore Drilling broke down the 24 USD level in July and since then the stock has tried to break through this level on the upside for 5 times. However the level proved to be strong resistance. Now the stock is testing this level for the 6th time and there seems to be more strength to the upside. Current risky setup where the stock bounced off the 50 daily moving average provides a R/R = 4.
For now it might be early to enter this trade.
For a safer entry, wait until the stock closes above the 25 USD level which is the level where previous breakouts failed...
Offshore
A long term trade that will 100% pay off. GuaranteedAs Swiss franc is exposed to events in Europe (high correlation to EUR) plus negative interest rate that will likely increase, ie becoming more expensive to store funds in CHF, Swiss banks will likely become less and less of a safe haven as other currencies become more attractive or even perhaps Gold. Also, don't forget with new tax and bank secrecy laws, Switzerland is becoming less and less a destination for offshore funds. In any case, Switzerland has a manufacturing sector to protect and preventing the CHF to increase further will be a job for the SNB.
On the other hands, the US economy is shaking off the winter blues and looks to increase rate in the next six months perhaps making it a destination for global funds as a carry trade.
DO - Solid Company, Management, Dividend, Future, Ext...Guaranteed it's easier to pull offline land drilling oil rigs then it is multi - million dollar offshore oil rigs. This resource was endorsed today by the president, mentioning that oil, will still be a valuable part in our economy. The offshore platforms can also be converted & be utilized for offshore wind projects for renewable energy. I lost count of how many teams already are proposing floating wind turbines. Other then for upgrades & repairs, there is no reason there will be rigs floating in the water doing absolutely nothing. Yes efficiencies can be gained in different areas, but the hunt for energy whether it be oil, renewable will still be in demand and always be required. Offshore projects can dominate Land based operations and this company is positioned well for the future with its assets. This is a good entry point to put some cash to work here.
