Nordic American Tankers Limited, a tanker company, engages in acquiring and chartering double-hull tankers. As of December 31, 2014, it owned 24 Suezmax crude oil tankers, including two new buildings under construction. The company was founded in 1995 and is based in Hamilton, Bermuda.
Take a look at the 1-year chart of Nordic (NYSE: NAT) below with added notations:
Overall, NAT has been trending higher throughout most of 2015. Twice over the past 3 months the stock has hit the same resistance at $17 (red). Last week the stock tried again to break above that mark, but failed once more. A close above the $17 should lead to a significant leg higher for NAT.
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The Tale of the Tape: NAT has a 52-week resistance at $17. The possible long position on the stock would be on a breakout above that level with a stop placed under it.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
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