Maritime shipping, logistics, container shipping and dry-bulk carrier stocks posted strong results on Wednesday with Star Bulk Carriers (SBLK), an IBD50 stock, Matson (MATX), Eagle Bulk Shipping (EGLE), and Global Ship Lease (GSL) all showing relative strength while popping above buy points.
Most of these candidates broke out of down trends about six weeks ago, currently rising with bullish 9/21 day moving averages. Over the past few days many of these potential candidates faded from highs then bounced at support, moving up and to the right,. This type of price action is what we like to see when we’re buying dips. Buyers step up at the rising 9/21d moving averages then sell a few days or weeks later into strength.
We’ll look for these maritime bulk and container shipping stocks to continue.
Maritime Bulk Shipping – GSL
Global Ship Lease (GSL) built an 8-week cup and handle base, with prices pushing above the handle of Wednesday, suggesting a breakout might be imminent.
In addition, RS Line rose to 97 on Wednesday, signaling the trend is strengthening over the past three trading days, following a break 4% above its buy point (28.61). The handle consolidated for 12 days, with the break hgher on Wednesday with 3.4 million shares trading hands.
The 60-minute chart below gives a better view of current price action, with pre-market price up an additional (+1.62%). We’ll look for a surge in volume and for the stock to move higher today if the group maintains strength. Watch the entire group for confirmation.
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Happy Trading,
Vinny
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