I last looked at Transocean Ltd. (RIG) in September of 2017, noting that "While the price action since June is better, RIG has not hammered out a large base pattern. RIG should trade sideways between $8 and $11, making a bigger bottom. Traders should approach RIG from the long side on declines and investors should be patient."
Investors can be involved now that RIG has made an impressive base formation.
In this updated daily bar chart of RIG, below, we can see how a rally began in August. There were a number of corrections and pullbacks along the way but prices kept making higher highs and higher lows. RIG is above the rising 50-day moving average line and the rising 200-day line.
The daily On-Balance-Volume (OBV) line has been rising since prices turned up back in August. A rising OBV line tells us that buyers of RIG have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator broke out over the zero line in early April and is still bullish.
In this weekly bar chart of RIG, below, we can see the base pattern clearly. Dips to and just below $9 have been bought for the past two years. Prices broke above the early 2018 highs and are above the rising 40-week moving average line.
The weekly OBV line turned up last June and is still pointed higher. The weekly MACD oscillator is bullish, too.
In this Point and Figure chart of RIG, below, can see an upside price target of $23.50 being displayed. A trade at $17 will be bullish for this chart and could generate higher price targets.
Bottom line: I love the base pattern of RIG on the weekly chart. The daily chart is bullish and we have some good upside price targets. Go long or add to longs at the current level. Buy more above $17. Look for gains to around $25.00 in the months ahead.