Diamond Offshore Drilling (DO) Bollinger Signal Hits Buy With $18.12 Support Level

Diamond Offshore Drilling (DO) is finding it’s name on investor’s trading sheets as the Trendspotter Opinion rating has reached “Buy” with first resistance at $18.78 and second resistance at $19.03.  On the other end, investors are watching the first support level of $18.12, and the second support level of $17.71. The trendspotter strength signal is currently Strong. This signal is compared to the historical performance where maximum would be considered the strongest, and minimum would be touted as the weakest. In terms of direction, the trendspotter signal is currently Weakening. This signal may indicate if the Buy or Sell is weakening or gaining strength, or if the Hold is leaning towards a Buy or Sell. This signal utilizes a system that involves volatility, momentum, and wave theory to help reveal the general trend.

Bollinger Bands are somewhat like moving average envelopes, but drawing calculations for both is different. In Bollinger Bands, standard deviation levels are considered to draw the upper and lower lines, whereas for Moving Average Envelopes, the lines are plotted by taking a fixed percentage. The 20-Day Bollinger Band currently is signaling a “Buy” for Diamond Offshore Drilling (DO).  This indicator can be used to identify short-term overbought and oversold zones, to confirm divergences between prices and indicators and to predict future price targets.

One technical indicator that may help gauge the strength of market momentum is the Average Directional Index or ADX. At the time of writing, the 14-day ADX for Diamond Offshore Drilling (DO) is standing at 23.25. The ADX was created by J. Welles Wilder to help determine how strong a trend is. In general, a rising ADX line means that an existing trend is gaining strength. The opposite would be the case for a falling ADX line. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal.

Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Diamond Offshore Drilling (DO)’s Williams Percent Range or 14 day Williams %R is resting at -2.78. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.

When performing stock analysis, investors and traders may opt to view technical levels. Diamond Offshore Drilling (DO) presently has a 14-day Commodity Channel Index (CCI) of 147.56. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory.

Checking in on moving averages, the 200-day is at 14.94, the 50-day is 15.33, and the 7-day is sitting at 17.14. Moving averages may be used by investors and traders to shed some light on trading patterns for a specific stock. Moving averages can be used to help smooth information in order to provide a clearer picture of what is going on with the stock. Technical stock analysts may use a combination of different time periods in order to figure out the history of the equity and where it may be headed in the future. MA’s can be calculated for any time period, but two very popular time frames are the 50-day and 200-day moving averages.

Shifting gears to the Relative Strength Index, the 14-day RSI is currently sitting at 71.46, the 7-day is 83.36, and the 3-day is currently at 95.57 for Diamond Offshore Drilling (DO). The Relative Strength Index (RSI) is a highly popular momentum indicator used for technical analysis. The RSI can help display whether the bulls or the bears are currently strongest in the market. The RSI may be used to help spot points of reversals more accurately. The RSI was developed by J. Welles Wilder. As a general rule, an RSI reading over 70 would signal overbought conditions. A reading under 30 would indicate oversold conditions. As always, the values may need to be adjusted based on the specific stock and market. RSI can also be a valuable tool for trying to spot larger market turns.