Potential Breakout

Noble Corp. (NE), an offshore drilling rig operator, appears to have formed a triple bottom over the last several months. I had owned a November call on Monday and had planned to hold it for several weeks, at least until early Nov / late Oct. Perhaps not unfortunately, during a spike on Monday, my sell order was executed before I could alter the price, or even realize what had happened. Needless to say, I'm not too sorry. The stock closed down nearly 2% that same day and has been trading in a range since.

However, these are positive signs of the potential breakout above $52. The market seems to be hovering in anticipation of tomorrow's earnings report, scheduled for 1PM CT. Analysts are expecting $1.17 EPS, with a high estimate of $1.25, and a low of $1.11. I am expecting NE to meet or beat analysts' estimates. If that's the case, expect a move to $55+ by Friday's close.

Similarly, a good earnings report from NE will undoubtedly send RIG and DO soaring in kind.