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| Gator's Chart of the Day: HERO |
Hercules Offshore, Inc is not a flashy company. They drill in shallow water so they don't command $650k/day for a rig but they are doing just fine, thank you. The company reported earnings July 27th and while they didn't knock it out of the park they were solid and the stock has acted well since then. On Friday it popped above resistance and it looks like the next headwind could be the 200 day sma. I say could be because it hasn't been terribly relevant. Finviz shows the 12 month price target as 5.88.
The Trade
Ideally the stock will pull back to test the breakout and bounce from about 3.75. If it does I think that is the entry and it it should be with a half position and the stop back below support around 3.65. I would add when the position is solidly profitable. If you can start the position under 4.00 there should be about 50% upside and a risk of about 9%.
