Can Diamond Offshore Drilling Dazzle Investors?

by Sam Collins 08/26/09

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Diamond Offshore Drilling (DO) -- This company is a worldwide offshore oil and gas drilling contractor.

DO formed a massive bottom known as a cup-and-handle -- a very bullish formation -- coupled with a gold cross (also bullish), and a recent buy signal from the Moving Average Convergence/Divergence (MACD) indicator.

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In order for DO to make the final breakout, it must penetrate the triple-top at $94.50.

If it can do it, the price objective is at least $110.

DO pays a dividend of $8 a share, giving it a yield of 8.8%.

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