The company that owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the International Flag trade, International Seaways Inc. (NYSE: INSW) shows signs of an upcoming price surge according to its latest charts.
Bullish Indications
#1 Falling Wedge Breakout: The daily chart of INSW shows that the stock was trading within a falling wedge pattern during the past few months. This pattern is marked in the daily chart in pink color. The stock has currently broken out from it. Once the stock moves breaks out from a bullish pattern like the Falling Wedge Pattern, it has the potential to move further up.
Daily Chart – INSW
#2 MACD above Signal Line: The daily chart shows that the MACD line (blue color) is currently above the MACD signal line (orange color). This is a possible bullish setup.
#3 Price above MAs: The price is currently above both the short-term moving average of 50-day SMA and the longer-term moving average of 200-day SMA.
This usually implies a possible bullish bias for the stock.
#4 Bullish Stoch: The %K line (blue color) is above the %D (orange color) of the stochastic in the daily chart.
This is a possible bullish sign.
#5 Bullish RSI: The daily chart shows that the RSI is currently above 50 and moving higher, which is a possible bullish sign.
#6 Above support area: The weekly chart shows that the stock is currently trading above a long-term resistance-turned-support area, which is marked as a green dotted line. The stock is also trading above its 50-week SMA. All these are possible bullish signs.
Weekly Chart – INSW
#7 Bullish Stoch: The %K line (blue color) is above the %D (orange color) of the stochastic in the weekly chart as well. The stoch is also moving up from oversold levels. This is a possible bullish sign.
#8 Bullish RSI: The weekly chart also shows that the RSI is currently above 50 and moving up, which is a possible bullish sign.
Recommended Trade (based on the charts)
Buy Price: If you want to get in on this trade, the ideal buy level for INSW is above the resistance level of $24.
TP: Our target prices are $28 and $32 in the next 4 to 6 months.
SL: To limit risk, place a stop loss below $21.30. Note that this stop loss is on a closing basis.
Our target potential upside is almost 17% to 33% in the next 3-6 months.
For a risk of $2.70, our first target reward is $4.00 and the second target reward is $8.00. This is a nearly 1:2 and 1:3 risk-reward trade.
Overall, this trade offers nearly 2x to 3x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down with high volume from the falling wedge pattern. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.
Happy Trading!
Tara
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