Global Ship Lease and Zim Integrated Relative Strength
We noted the strong demand for commodities in the weekend video, as supply-chain issues persist. Shipping and container stocks are benefiting from these macro issues, posing strong gains noted by our IBD and MarketSmith Relative Strength scans.
The stocks herein are printing fresh 52-week highs at the close on Monday, so we’ll look for these 10 candidates to perform on Tuesday. Three of the stocks are from the maritime and bulk shipping industry group, while Rio Tinto (RIO) was added at IBD Swing Trader.
Global Ship Lease
Global Ship Lease (GSL) is a London-based firm involved in fixed-term contract leasing of container ships. More importantly, Global Ship Lease boasts the highest possible IBD Composite Rating of 99, with its Relative Strength line climbing this week to 98.
The stock formed a cup base over the preceeding 12 weeks, moving just above its 26.61 buy point on Mondaqy.
MarketSmith scans repeatedly featured this stock and Zim Integrated over the last week.
Earnings are estimated to increase more than 115% in 2022.
Watch for volume to increase on a breakout from recent pivot levels in the coming days.
Zim Integrated Shipping
Israel based Zim Integrated Shipping (ZIM) printed new highs this week. We featured a Blog Post last week outlining our bullish expectations that you can reference here.
Price action performed well last week, with a bullish bounce from the 50-day moving average on volume that suggests institutions were accumulating shares of this number one ranked IBD stock.
Accumulation of “B” confirms institutions are present.
The stock is now extended from the line, so we’d only buy dips.
Diamondback Energy (FANG), Continental Resources (CLR) and EOG Resources (EOG) have rallied for weeks, competing with and taking market share from Saudi Arabia. Russia issues are excerbating the bullish trend as investors buy oil producers.
In addition, new technologies and efficiencies from U.S. producers continue to pressure service providers Halliburton (HAL) and Schlumberger (SLB). The latter goes ex-dividend today, so watch price action, as it too popped up on the relative strength scan.
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Happy Trading,
Vinny
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