Piedmont Office Realty Trust Inc 

Piedmont Office Realty Trust Inc (NYSE: PDM) is a US-based real estate investment trust (REIT). The company’s business segment includes development, acquisition, re-development, management, and ownership of the commercial real estate properties located across the Eastern United States.

As per our previous recommendation on PDM as on June 04, 2021, we recommended a ‘Buy’ rating on the stock at USD 18.74 from the technical analysis standpoint. Stock made a high of USD 20.35 on June 14, 2021 and witnessed an upside gain of ~8.59 percent from the recommended entry-level. Thereafter prices showed a downside correction and recently took the support of a downward sloping trend line, indicating the possibility of an upward direction from hereon. Therefore, considering the recent price action and technical indicators analysis, we are of the view that the stock may witness an upward direction for the next couple of sessions (1-2 weeks), and hence we recommend a ‘Hold’ rating on the stock at the close price of USD 18.65 (as on July 02, 2021). The summary of our previous ‘Buy’ rating, revised target levels, and price movement since the previous recommendation for PDM is provided as below:

Price Action Analysis (on the Weekly Chart)

PDM’s prices are sustaining above an upward sloping trend line for the past 5 months, indicating an upward direction for the stock. Prices recently took the support of another downward sloping trend line at the USD 18.40 level, further supporting a positive stance. Now the next major resistance level appears at USD 21.62 and prices may test the level in the short-term (1-2 weeks).  

On the weekly chart, RSI (14-period) is trading at ~55.29 levels and indicating a positive trend for the stock. The CMP is above the 21-period SMA and 50-period SMA with a positive crossover, further providing strength to the prices.

Conclusion:

Based on the above-mentioned price action and technical indicators analysis, we can conclude that Piedmont Office Realty Trust Inc is still looking technically well-placed on the chart, and we recommend a ‘Hold’ rating on the stock at the close price of USD 18.65 (as on July 02, 2021).

Oceaneering International Inc 

Oceaneering International Inc (NYSE: OII) is an oil field provider of engineered products and services mainly to the offshore oil and gas industry. The company’s business segment includes remotely operated vehicles (ROV), deep-water intervention, manned diving services, etc.

As per our previous recommendation on OII as on June 04, 2021, we recommended a ‘Speculative Buy’ rating on the stock at USD 16.74 from the technical analysis standpoint. Stock made a high of USD 17.93 on June 07, 2021 and witnessed an upside gain of ~7.11 percent from the recommended entry-level. Currently, the prices are consolidating at the higher levels and hovering around the resistance turned support level USD 16.00, indicating the possibility of an upside direction. Therefore, considering the recent price action and technical indicators analysis, we are of the view that the stock may witness an upward direction for the next couple of sessions (1-2 weeks), and hence we recommend a ‘Hold’ rating on the stock at the close price of USD 16.21 (as on July 02, 2021). The summary of our previous ‘Buy’ rating, revised target levels, and price movement since the previous recommendation for OII is provided as below:

Price Action Analysis (on the Weekly Chart)

OII's prices are sustaining above resistance turned support level USD 16.00 for the past one month with a positive bias, indicating the possibility of an upward direction for the stock. Now the next major resistance level appears at USD 19.46 and prices may test the level in the short-term (1-2 weeks).  

On the weekly chart, RSI (14-period) is trading at ~62.35 levels and indicating a positive trend for the stock. The CMP is above the 21-period and 50-period SMA with a positive crossover, further providing strength to the prices.

Conclusion:

Based on the above-mentioned price action and technical indicators analysis, we can conclude that Oceaneering International Inc is still looking technically well-placed on the chart, and we recommend a ‘Hold’ rating on the stock at the close price of USD 16.21 (as on July 02, 2021). 

Note 1: Investors can consider exiting from the stock if the Target Price mentioned as per the technical analysis has been achieved and subject to the factors discussed above. 

Note 2: How to Read the Charts?

The Green colour line reflects the 21-period moving average while the red line indicates the 50- period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

A trailing stop-loss is a modification of stop-loss in case of favourable movement in the price to protect the gains. We suggest Investors to Trail the Stop-Loss as per the aforementioned levels if the stock price achieves more than 60% of the Target 1. Investors should consider exiting from the position as per the Trailing Stop-Loss level if the price starts moving downwards after achieving more than 60% of the Target 1. 

The reference date for all price data, volumes, technical indicators, support, and resistance levels is July 02, 2021. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by investors. Technical reports in general chart out metrics that may be assessed by investors before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

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