FRO & STNG Shipping Stock Trade Setups

Member @drummonddrive inquired in the trading room about FRO (Frontline Ltd ADR) & STNG (Scorpio Tankers Inc), both shipping stocks, as potential long trade ideas. FRO could be putting in a right shoulder on a nice Inverse Head & Shoulders bottoming pattern on the daily time frame. If so, it would need to reverse soon & rally back up to the neckline in order to keep nice symmetry on the pattern.

FRO daily Nov 28th

FRO daily Nov 28th

STNG has been getting pounded with wave after wave of selling for years now but with potentially powerful divergences forming on this weekly time frame, the stock could be poised for a strong rally in 2018+. From my read on the charts, it appears that STNG is likely to make at least one more thrust down to undercut the previous low before mounting a substantial rally & possibly mark an end to the vicious bear market it has been in for years. Potential price targets shown on the 10-year weekly & 2-year daily charts below.

2018-01-21T22:52:28+00:00Nov 28, 2017 2:13pm|Categories: Unofficial Long Ideas|Tags: , |1 Comment

One Comment

  1. Drummonddrive November 29, 2017 11:16 am at 11:16 am

    STNG just announced a 30 million public offering below the market at 3$. A private holding company…Scorpio services is buying at least 20 mil. U gotta love this stuff. It’s legal robbery. I’ll be buying on first reversal candle.

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