Promising Signs: SCORPIO TANKERS INC Setting the Stage for a Breakout.

Our stockscreener has identified a possible breakout setup on SCORPIO TANKERS INC (NYSE:STNG). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:STNG for potential opportunities.

What is the technical picture of NYSE:STNG telling us.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Taking everything into account, STNG scores 9 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, STNG is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that STNG is one of the better performing stocks in the market, outperforming 86% of all stocks.
• STNG is one of the better performing stocks in the Oil, Gas & Consumable Fuels industry, it outperforms 86% of 216 stocks in the same industry.
• STNG is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month STNG has a been trading in the 60.05 - 67.40 range, which is quite wide. It is currently trading near the high of this range.
• Volume is considerably higher in the last couple of days.

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

How does the Setup look for NYSE:STNG

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:STNG has a 10 as its setup rating:

STNG has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 66.25. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 64.70, 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. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:STNG and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.