Hercules Offshore Inc. had a sharp decline from $39.47 (U.S.) to $1.07 (A-B), followed by a horizontal trading range between $2 and $7 for more than three years (dotted lines). The recent price action (C) suggests the stock is on the verge of a breakout from this trading range. A sustained rise above $7.50-$8 would confirm the breakout. Hercules Offshore is somewhat overbought, but only a decline below about $5.70 would be negative.
A rise above $7.50-$8 would signal an initial target of $9. The large trading range (dotted lines) supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.Report Typo/Error
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