Diamond Offshore Drilling
broke down the 24 USD level in July and since then the stock has tried to break through this level on the upside for 5 times. However the level proved to be strong resistance. Now the stock is testing this level for the 6th
time and there seems to be more strength to the upside. Current risky setup where the stock bounced off the 50 daily moving average provides a R/R = 4.
For now it might be early to enter this trade.
For a safer entry, wait until the stock closes above the 25 USD level which is the level where previous breakouts failed...