EURN trade ideas
Euronav NV $EURN is holding$EURN is holding above fib 0.618. RSI is below 50 which is not a good signal to be bullish. Needs to get above both SMA50 and RSI 50 to be bullish.
Euronav Overview: Oil Transportation Euronav NV engages in the transportation and storage of crude oil. It operates through the Tankers and FpSO (Floating Production, Storage, and Offloading Operation) segments.
Euronav reports earnings May 7th
Relatively strong (High Timeframe) support/resistance lines
High volume since October 2019
Looks like it's ready to head to the next resistance line
Possible that the need to store oil will equate to winning long trade.
Production cuts will affect future oil tanker demand.
EURN steady trending upwardsPretty strong parallel trend here going upwards. Good amount of resistance at that 1 Fib retracement level but i see us passing through that in a week or two at this rate.
Also a lot of tanker stocks are above 80 RSI so i don't see too much of a problem there.
$EURN Euronav gets pumped on MEdiaThe shipping spot market "is going to stratospheric levels," Euronav (EURN -0.7%) CEO Hugo de Stoop tells Bloomberg. "We think it will go higher and higher, simply because there are more and more ships which are being taken out of the fleet for storage purposes."
The CEO will be appearing on CNBC to give it another pump tomorrow
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Buy Oil Tankers as they benefit from the oil glut
Oil traders buy oil spot and sell it forward to take advantage of unsually large contango on the futures curve. 6 month forward on brent and wti sells at a premium exceeding 10$ a barrel.
Shortage of land storage pushes oil traders to store oil on water using ships. There are only about 800 VLCS (Very Large Container Ships) and the daily rental price has sky-rocketed.. Tankers now rent for 200k to 300k a day vs 25k/day last year.
Tankers like Frontline , Euronav, or DHT will make unprecedented profit for as long as the contango stays... Social distancing will continue well after Q1, keeping oil demand low, and contango high. www.bloomberg.com
Al tankers fell sharply on the news Opec would cut production which narrowed the contango slightly, but the latter has since then widened even more than before the news, which should support the tankers again.
technically EURN it just broke key resistance
Inverted H&S in EURNExplained in the graph. Looking for price target, $11.51, to reach in 3 to 4 weeks.
EURN potential reversal areaVolume picking up at the bottom of a channel. stochastics starting to reverse back up
Retesting Bottom Trend LineEURN broke to the downside after the bottom trend line failed to provide support. Fundamentals still look good with rates remaining well above last year. I'm expecting a break back above the trend line.
EURN Watch for BounceUnfortunately the previously posted trend line broke. I'm expecting a bounce around 11.6-11.8 and perhaps another attempt at a breakout by the time the release Q4
$EURN weekly chart breakoutEuropean shipper breaking out from a 3 year range/box/base trading on more than 2X Vol Avg
Plenty of room still on both RSI and MACD
Ideally we get a pull back and retest of the breakout area 9.50-10.00 and then resume upwards
Calculated target of the move is 12.35
EuroNav / Nice potential a nice 30 % return in short termEURONAV the oil shipping company shows a nice opportunity to reach higher price level in the short term.
The stock has fall dramatically from its peak in late 2015 to reach a low in august 2017.
If the stock can trace back through the 1st fibonacci level at 8.18 € there is a good opportunity for the stock to reach the next level at 9.54 (+16.5%) and to go even higher towards 10.43 ( 29 % return ).
Fundamentals of the company are good as well as the oil shipping industry is getting traction with the increase of the demand and due to some geopolitical tension.
A good investment opportunity to my opinion with a great upside within 2-3 months
$EURN #Long #Stock #bottom #oilEURN looks to be settling into a rounded bottom. We will need to watch this one closely. If you are one of those that think crude oil prices are going to go higher this might be a good stock for you to think about.
Monitor for a breakout above US$8.20Price has been recovering above the EMA15, forming a five-day sideways consolidation.
Price may rally towards the US$9.65-US$10.00 levels.
Support will be pegged around US$7.88
