• Diamond Offshore Drillers Selling swing trade early

On Friday, I saw that DO was way outside of the upper Bollinger Band and based on past precedence, the last five times the stock had done that, it had led to near immediate sell-offs in the stock. Despite having only gotten in the stock the day prior, I decided to sell my position in Diamond Offshore Drillers (DO) for a quick 2.6% gain ($72.83 from $71.00). Despite being down 1.5% in the stock the day prior, that was a nice change in the winds for DO and one that I was glad to take considering how over extended the stock actually was. 

When I see such a precedent that has been set, I don’t sit around waiting to see if it will happen for a sixth time, instead, I take the gains, and recommend you do the same, when you see past precedence establish such a clear verdict for price action outside of the upper Bollinger Band. 

Here’s the chart showing you the clear signal.

Diamond Offshore Drillers Selling swing trade early 

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