Teekay Tankers Ltd. ( TNK) is one of the world's largest marine energy transportation and storage companies and its charts tell me a very bullish story for the months ahead. Let's take a look.
In this daily bar chart of TNK, below, we can see an impressive base pattern and an upside breakout in April from a neckline around $15. Prices retested the breakout level and have continued higher. TNK is trading above the rising 50-day moving average line and above the rising 200-day line. Trading volume has increased since late February and confirms the price gains. The On-Balance-Volume (OBV) line shows a rise from December to also confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator turned bullish in late February and continues its positive direction.
In this weekly Japanese candlestick chart of TNK, below, we can see the past three years of price action. Here the base pattern is clearly visible, as is the upside breakout. Prices are trading above the rising 40-week moving average line. The weekly OBV line confirms the price gains and the MACD is bullish, too.
In this 10-year bar chart of TNK, below, we can see what looks like an even more impressive potential bottom pattern. A strong weekly close above $26 would be a breakout.
In this daily Point and Figure chart of TNK, below, we can see an upside price target in the $27 area.
In this weekly Point and Figure of TNK, below, we can see a longer-term price target in the $34 area.
Bottom line strategy: traders could go long TNK on a two-day pullback or shallow dip and risk to $16.50 for now. Our price targets are $27 and then $34. Get more aggressive on strength above $26.
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A few months of anxiety likely lies ahead of us, and caution remains the watchword of the day.
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