Jim Cramer explained in a Real Money column Monday that when oil prices plunge, typically a big chunk of our economy rallies. But in a Covid-19 world, the airlines, cruise lines and even gas stations have more oil than they need, which is why storage plays like Nordic American Tanker Shipping Ltd. (NAT) surged as the oil industry filled up every available storage option.
Let's check out the charts and indicators of NAT this morning.
In the daily bar chart of NAT, below, we can see the sharp change in trading volume since October. It seems that some far-sighted investors may have recognized the oil storage problem (and opportunity) months ago and not just the other day.
The daily On-Balance-Volume (OBV) line began to rise from September indicating more aggressive buying and the slopes of both the 50-day moving average line and the 200-day moving average line turned positive.
The Moving Average Convergence Divergence (MACD) oscillator has been showing stronger trend strength since early October.