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Diamond Offshore Drilling (DO) -- This worldwide offshore oil and gas drilling
contractor has formed a massive bottom known as a cup and handle, which is a
very bullish formation. The cup-and-handle bottom, coupled with a golden cross,
which is also bullish, makes this chart look like a winner.
Click to Enlarge
On September 22, I said, "In order for DO to make the final breakout, it must
follow through on the penetration of the triple top at $94.50. The current round
of profit taking gives us an excellent opportunity to buy DO, because the
rebound should take it to at least $110."
DO broke the triple top and ran to just under $110 early in October. But
profit taking has again driven the stock down to our buy point under $95.
DO pays a dividend of $8 per share, giving it a dividend yield of
8.59%.
By Sam Collins of OptionsZone.com
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