Need to close above $18 and above the resistance line
STNG is a tanker company I've followed since 2016, investing in and out of it for swing trading; before I even tried technical analysis. This company has a solid fleet and is trading at all time lows, and is in a position to generate significant cash flow not seen since 2015.
We have Contango in oil prices pushing people to buy and store the oil until a future rebound in price; yet there are only a few places oil can be stored.... Tankers being one of them.
This specific company has a significant and up-to-date fleet and because of the oil oversupply, there is heightened demand for storage and transport. As a result of the increased demand, rates are visiting levels not seen in a good while (2015). These levels, if maintained, can pump the type of cash flow that makes this trade up 50-100% pretty quickly; with room to go even higher the loner the elevated rates are maintained. Essentially, this company can generate free cash flow equal to its market cap if rates maintain and I personally think this stock is being manipulated for accumulation; but the accumulation is happening and has been since 14s
We have Contango in oil prices pushing people to buy and store the oil until a future rebound in price; yet there are only a few places oil can be stored.... Tankers being one of them.
This specific company has a significant and up-to-date fleet and because of the oil oversupply, there is heightened demand for storage and transport. As a result of the increased demand, rates are visiting levels not seen in a good while (2015). These levels, if maintained, can pump the type of cash flow that makes this trade up 50-100% pretty quickly; with room to go even higher the loner the elevated rates are maintained. Essentially, this company can generate free cash flow equal to its market cap if rates maintain and I personally think this stock is being manipulated for accumulation; but the accumulation is happening and has been since 14s
Trade active:
Trade is 100% still active with another 50% upside by August (really dependent on reported earnings and possible guidance).
The entire sector has seen significant benefits with Contango in play. 200dma acted as resistance at $27 and change and I expect us to either consolidate above or below the 200dma for the next few weeks (I think ER is in 2weeks). Look for another 20% from these levels before then if the trend remains (and the trend remains!)
The entire sector has seen significant benefits with Contango in play. 200dma acted as resistance at $27 and change and I expect us to either consolidate above or below the 200dma for the next few weeks (I think ER is in 2weeks). Look for another 20% from these levels before then if the trend remains (and the trend remains!)
A close beyond and above the green line will see a prompt visit to the low 20s, with resistance again in the mid 24s area; and looking further back on the daily you'll be keen to notice a gap in the 27-28; coinciding with the descending 200dma. Contango + Volatility = 200dma going to be revisited soon
Happy trading