The share price of Nordic American Tankers (NAT) peaked in early 2005 and was under pressure for 10 years. Prices righted themselves and finally turned up last year. What course is plotted for NAT now?
In this daily chart of NAT, above, we can see that prices have largely traded sideways the past 12 months. Like many other stocks, there was a low made in February. From that low things have improved. The On-Balance-Volume (OBV) line is pointed up. Prices are over the 50-day simple moving average line and also the 200-day line, though its slope is still pointed down. There are no bullish or bearish divergences from the momentum study to tip our opinion just yet. A close above $17 will be bullish and traders should consider buying that breakout.
In this three-year weekly chart of NAT, above, we can see that prices are above the 40-week moving average line. The OBV line is up from late 2014, which tells us that there was some aggressive buying and accumulation. More recently the OBV line is neutral. The Moving Average Convergence Divergence (MACD) oscillator is bullish and above the zero line. When the MACD is above the zero line, it tells you that prices are in an uptrend and you should trade from the long side. The trigger for longs on a weekly chart is a weekly close above $17. After a weekly close above $17, the sell stop can probably be placed below $15.
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