Back on May 26 we recommended the long side of Teekay Tankers (TNK) giving $27 and $34 as price targets. The shares have passed our first target and still look strong despite talk of a global recession.
Let's revisit the charts.
In the daily bar chart of TNK, below, we can see that the shares have surged towards $32 before pulling back to $28. The stock trades firmly above the rising 50-day moving average line and above the rising 200-day line.
The trading volume has been active since March. The On-Balance-Volume (OBV) shows a positive trend and supports the price gains. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in bullish territory but crossing to the downside for a take profit sell signal.
In this weekly Japanese candlestick chart of TNK, below, we can see the strong rally and a very obvious and large upper shadow above $29. This potentially bearish candle is not confirmed with a follow-on red candle (bearish). Prices are above the rising 40-week moving average line.
The OBV line is bullish and so is the MACD oscillator.
In this daily Point and Figure chart of TNK, below, we can see an upside price target in the $38 area.
In this weekly Point and Figure chart of TNK, below, a $49 price target is being projected.
Bottom-line strategy: Traders who are long TNK should continue to hold but raise stop protection to $25. Our nearest price targets are now $34 and $38.
