DHT Holdings Inc. may be putting the final touches on a near-perfect U-shaped reversal. This shipping stock (crude oil transporter) had nothing less than a miserable 2011, topping out above $5.00 early in the year, and then hitting bottom at $0.66 in mid-December. Things changed dramatically for DHT then, beginning with a cross above the 50-day average line (for the first time in a year).
The kicker is the massive high-volume buy-in we've seen over the past two weeks; it's the highest volume we've seen for DHT, well, ever, to be honest. And, that in itself speaks volumes about how things are perceived as having changed for DHT Holdings.
The other subtle clue here, as was alluded to, is the shape of the DHT chart itself. While V-shaped reversals tend to peter out, the slow, drawn-out U-shaped rebounds tend to last a while and make good follow-through. This chart may need to cool off just a tad after Monday's explosive day, but the heavy lifting's been done. Anything above the recent ceiling of $1.15 will be huge.
http://www.smallcapnetwork.com/Thursdays-Stocks-to-Watch-Why-DHT-RLD-TELK/s/via/1789/article/view/p/mid/1/id/114/
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