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Possible Bearish Inside Day Candle Pattern Detected for Diamond Offshore (NYSE:DO)

By James Quinn

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Diamond Offshore (NYSE:DO) based on the price action in the company's shares. Today's price range of $9.21 and $9.21 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Diamond Offshore may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Diamond Offshore Drilling, Inc. is a global offshore oil and gas drilling contractor. The Company is a deep water driller that serves markets that include the deep water, harsh environment, conventional semisubmersible and jack-up markets.

Over the past year, Diamond Offshore has traded in a range of $8.71 to $21.92 and is now at $9.21, 6% above that low. Over the last five market days, the 200-day moving average (MA) has gone down 1.4% while the 50-day MA has declined 0.5%.

There is potential upside of 57.0% for shares of Diamond Offshore based on a current price of $9.21 and an average consensus analyst price target of $14.46. The stock should run into initial resistance at its 50-day moving average (MA) of $10.64 and subsequent resistance at its 200-day MA of $13.53.

SmarTrend is monitoring the recent change of momentum in Diamond Offshore. Please refer to our Company Overview for the results of our proprietary technical indicators that have been scanning shares of Diamond Offshore in search of a potential trend change.

Keywords: bearish inside day candle diamond offshore

Ticker(s): DO