According to Hansson, Nordic American is "making a lot of money," as the company merely transports oil where it needs to go. The oil market is volatile right now, crude prices are extremely low, and some oil companies are storing oil in tankers, holding off for better prices.
Nordic American's fleet is renting to big oil companies for rates of $70,000 per day, which has helped the company pay off debt, said Hansson.
We last visited with NAT last Tuesday, and wrote that, "The storage problems and the supply/demand situation of the crude oil market are not going to be solved right away, in my opinion. That problem is an opportunity for NAT to rally further. The bar chart shows that prices can go down as well as up so trading NAT is really only for the nimble and experienced."
The price of NAT gapped higher, so let's look at the charts again.
In this updated daily bar chart of NAT, below, we can see that prices have surged higher in recent days including an upside price gap Monday. Prices are above it not extended above the rising 50-day moving average line and the rising 200-day moving average line. The daily trading volume has been "huge" and the On-Balance-Volume (OBV) line has made a new high for the move up. The Moving Average Convergence Divergence (MACD) oscillator is clearly in a strong uptrend.
In this weekly bar chart of NAT, below, we can see that prices are emerging from a long base pattern. NAT is above the rising 40-week moving average line. The weekly OBV line is rising and close to a new high telling us that buyers of NAT are more aggressive. The MACD oscillator is bullish.
In this daily Point and Figure chart of NAT, below, we can see the same $9.25 price target we saw last week.
Bottom line strategy: No change in strategy from last week: "The bar chart shows that prices can go down as well as up so trading NAT is really only for the nimble and experienced."