It can be challenging to find turn-around stocks in these potentially volatile times. When sifting through the various sectors and opportunities, you want to buy strength and stocks that have favorable risk/reward metrics but also a nice dividend that may help you sleep better at night. Sure, many are diving feet first into the commodity trade and chasing some high-flying commodity stocks. It’s not a bad place to be. In fact, I discussed copper and Freeport-McMoRan (FCX) on Power Lunch Tuesday as a good opportunity. For those looking for a stock with a favorable technical setup, in a sector that is turning around and pays a nice 6% dividend, Noble Corporation (NE) may be worth a look. The setup The Sugar Land, Texas offshore oil driller’s stock is relatively flat over the last 12 months, but up more than 20% in 2026 and on the verge of a major breakout. When looking at the yearly chart, we see an intermediate-term uptrend with shares now trading above their rising 50- and 200-day moving averages. I use these levels as barometers of health, and it appears Noble getting its legs back. It is also within two sectors — the small cap Russell 2000 and oil & gas drilling — that continue to see a strong rotation of funds flowing in. Momentum indicators in both the RSI and MACD flashed buy signals and are not in overbought territory. There’s room to run. This is checking many of the boxes we like to see for that technical turnaround. Trend favorable, strong sector, momentum at its back and potential breakout from a major resistance level. The trade The $33 level has been tested and now toppled as the stock is making new 52-week highs. The risk/reward is favorable to enter the name here. To get an idea of the potential turnaround we look at the chart over its trading history going back roughly five years. We used Fibonacci retracement levels to demonstrate our next target. That upside is to the $37 area and roughly a 10% rally from current levels. That is a conservative target, and longer-term holders could be rewarded with a run back into the mid-$40s and possibly higher given the break-out from this significant resistance level. Overall, it’s not my usual pick as its market cap is less than $6 billion and it’s not included in the major indexes, but the average daily volume has hovered around 1.5 million shares — so the liquidity is there. As a technician and trader, its potential is too good to ignore — if price fails to hold above the intermediate uptrend, then we exit with a small loss. However, the reward over time is far greater than the downside risk. — Jay Woods, CMT DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
This oil driller’s stock shows a favorable trend in a strong sector and has momentum at its back
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