NYSE:STNG may be ready to breakout.

Our stock screener has flagged SCORPIO TANKERS INC (NYSE:STNG) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:STNG for potential movement.

Deciphering the Technical Picture of NYSE:STNG

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, STNG scores 7 out of 10 in our technical rating. Although STNG is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• STNG is one of the better performing stocks in the Oil, Gas & Consumable Fuels industry, it outperforms 78% of 216 stocks in the same industry.
• STNG is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so STNG is lagging the market slightly.
• In the last month STNG has a been trading in the 54.39 - 59.32 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• When comparing the yearly performance of all stocks, we notice that STNG is one of the better performing stocks in the market, outperforming 83% of all stocks. However, this relatively good performance is mostly due to a recent big move.

Check the latest full technical report of STNG for a complete technical analysis.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:STNG currently has a 9 as setup rating:

STNG has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 54.98, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for STNG in the last couple of days, which is a good sign.

Trading breakout setups.

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.