Nordic American Tanker Shipping Limited is an international tanker company that owns double-hull Suezmax tankers averaging approximately 155,000 deadweight tons (dwt) each.
NAT is giving some trading signals that may be worth looking at, or perhaps participating in. The buy signal is there, however the market sentiment is walking a fine line lately with the impending market pull back not showing itself in force. For certain, if such presumptions are to occur it could be violent trading conditions for any longs in the market. Just the same, opportunities to trade don’t wait for news cycles to change.
NAT tested its 30 min. MACD cross today and traded up into the close. Something it has tried to do the past three days making lower lows. Divergence in all MACD trading time frames along with a now positive MACD signal on the 5 and 15 minute charts leads me to believe that todays bottom could be used as a stop limit to something higher.
Todays low of 28.92 broke its previous two days double bottom of 29.01 on light volume. A 62% Fibonacci retracement from the March lows to the May 5 high of 38.10 would be 28.273. The May 5 high was the completion of a wave 5 formation. To view a ABC correction on the daily chart is difficult but we can use the wave 4 low along with the 62% correction help determine if the stock will continue higher.
The breakdown-The wave 4 low is 28.05. It will not retrace past this if an uptrend is to continue. Again, the 62% retracement is 28.273. The duration on the 30 min. chart along with the tested 30 min. MACD crossing and positive zero line crosses on 15 and 5 min. MACD charts all provide reason to enter a trade here.
A tight stop should be used for a short term trade at todays low of 28.92. Look for initial profit taking at 29.43, secondary profits at 29.75, just below the 200 day moving average.
If you want to play this trade longer you could only start a small position here anticipating that the stock may test its wave 4 low and hold at lower prices. Depending on your time frame use todays low or the wave 4 low as stop limits.
The short term trade analysis for NAT is being tracked in its trading alerts page.