Aban Offshore price movement is explosive in both the directions and thus it is considered a traders delight. Observe the price movement in Mid May 2010 all the way down from 1170 levels to 650 odd levels. The action was swift , and violent. Reason, One of the premier rigs had sunk in the Caribbean Sea.
Minor upmove started from around 740 levels……
Now 3 months later, reverse upward move is unfolding again with good volume action. And Stock is above 850 levels…. Reason, News is out again that the re insurer is covering almost all the claims of the company. This was always to happen !!! A company of size of Aban Offshore is supposed to have it’s bases covered before venturing out in deep sea’s…. isn’t it?
Results announced a day later reflected the one time write off for the sunken Rig.
Anyways… what will be interesting is to observe the price movement in next few days with the possibility of reaching the Gap Zone level of around 1000 odd levels quickly and maybe some more over the next few months.
Investors of Aban invested at 3000-4000 odd levels of 2007/2008 are still waiting for what seems to be eternity now…..
If you follow short term, trend-lines, probability and price-volume action ,then this is one stock to be on watch for now.