Transocean Back Over $20 For The First Time In 3 Months
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Transocean Ltd (NYSE: RIG) shares were trading higher by $0.72 (3.7 percent) at $20.29 in Tuesday's session. With no relevant news out on the issue, let's examine why one of Carl Icahn's worst performers as of late is rallying in today's session.
One major reason is the rally in crude oil prices as of late. As the commodity has rallied from its recent low, many of the drilling companies have responded in kind. In today's session, crude is poised to post only its second close over $60 since late December.
Another reason may be that the issue has completed a technical breakout to the upside. Until today, the pair of highs from May 5 ($19.77) and May 6 ($19.75) had prevented the from surpassing the psychological resistance level of $20.
So far, it has cleared both of the technical hurdles, reaching $20.33 and is trading just off the highs for the session. It has not closed above $20 since February 9, when it ended the session at $20.44.
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