Transocean Is Still A Pig (From A Technical Standpoint)

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Transocean LTD RIG shares are trading lower by $0.14 at $18.90 in Tuesday's session.

The catalyst for the decline is comments made by Mike Urban of Deutsche Bank. He reiterated his Sell rating on the issue and lowered his price target from $16.00 to $6.00.

Urban cites the 80 percent dividend reduction and the departure of the company's CEO as reasons for his drastic price target reduction.

Related Link: What Deutsche Bank Is Saying About Transocean

At first, traders cheered the moves, as the issue reached $19.65 in premarket trading. That marked the highest level since it tested the $20.00 level, reaching $19.92 on February 10.

However, Urban's comments brought an abrupt end to the rally.

After failing to clear Friday's close off then open ($19.05) only reaching $19.00, it swooned to $18.21 before rebounding to near the highs for the day.

Since making a near 20-year low at $14.50 on January 14, support has been moving higher and is near the $18.00 level.

That's been the area of five lows in the last eight trading session.