🎯 Trade: Long (Buy)
📊 Timeframe: Daily (D1) / Swing Trade
💰 Entry: $48.11 (Breakout above recent resistance)
🛑 Stop Loss: $42.43 (Below key support & SMA 50)
🎯 Take Profit: $62.22 (Previous high & extended target)
📉 Risk/Reward Ratio: 1 : 2.5
🔍 Technical Analysis
✅ Strong Uptrend Confirmed:
Price is in a clear uptrend across all major timeframes (Daily, 4H, 1H).
Trading well above key SMAs (SMA20: $44.70, SMA50: $44.31), confirming bullish momentum.
✅ Breakout Setup:
Entry at $48.11 represents a breakout above the recent consolidation zone, signaling a potential continuation of the upward move.
Volume supports the move higher.
✅ Healthy Momentum:
RSI: Sitting at ~63 on the daily chart. This indicates strong buying pressure without being overbought, leaving room for further upside.
MACD: Is positive and above its signal line, supporting the bullish momentum.
📈 Fundamental Backing (The "Value" Catalyst)
This isn't just a technical play. TNK offers compelling value:
Deep Undervaluation: Extremely low P/E Ratio (5.9) and P/B Ratio (0.9), signaling the stock is cheap compared to its earnings and book value.
Zero Debt: The company has NO DEBT and an impeccable balance sheet (Debt Score: 10/10). This provides financial stability and reduces risk significantly.
The Caveat: Revenue and income growth have been weak. This is a value & momentum play, not a growth story.
🎯 Why These Levels?
Entry ($48.11): The breakout level. A close above here confirms buyers are in control for the next leg up.
Stop Loss ($42.43): Placed decisively below the SMA50 and a key support level. This level protects against a false breakout and a change in trend.
Take Profit ($62.22): Targets the next major resistance area, which aligns with a previous high. This offers an excellent risk-to-reward ratio.
⚠️ Risk Considerations
Sector Volatility: Tanker stocks are volatile and sensitive to oil prices and global shipping rates.
Low Growth: The fundamental thesis is based on value, not growth. The trade relies on the market recognizing this value.
Always use a stop-loss. This trade is invalidated below $42.43.
📢 Conclusion
TNK presents a high-probability breakout trade with a fantastic risk-reward setup, backed by:
✅ Strong technical breakout from consolidation.
✅ Powerful fundamental value (cheap valuation, zero debt).
✅ Excellent Risk-to-Reward ratio (1:2.5).
I am long on a breakout and close above $48.11, targeting $62.22.
🔔 What do you think? Does TNK have more room to run?
#Trading #Stocks #TNK #Tanker #ValueInvesting #Breakout #TechnicalAnalysis
Disclaimer: This is not financial advice. The company has weak growth figures. This is a value/momentum trade. Do your own research and manage your risk accordingly.
📊 Timeframe: Daily (D1) / Swing Trade
💰 Entry: $48.11 (Breakout above recent resistance)
🛑 Stop Loss: $42.43 (Below key support & SMA 50)
🎯 Take Profit: $62.22 (Previous high & extended target)
📉 Risk/Reward Ratio: 1 : 2.5
🔍 Technical Analysis
✅ Strong Uptrend Confirmed:
Price is in a clear uptrend across all major timeframes (Daily, 4H, 1H).
Trading well above key SMAs (SMA20: $44.70, SMA50: $44.31), confirming bullish momentum.
✅ Breakout Setup:
Entry at $48.11 represents a breakout above the recent consolidation zone, signaling a potential continuation of the upward move.
Volume supports the move higher.
✅ Healthy Momentum:
RSI: Sitting at ~63 on the daily chart. This indicates strong buying pressure without being overbought, leaving room for further upside.
MACD: Is positive and above its signal line, supporting the bullish momentum.
📈 Fundamental Backing (The "Value" Catalyst)
This isn't just a technical play. TNK offers compelling value:
Deep Undervaluation: Extremely low P/E Ratio (5.9) and P/B Ratio (0.9), signaling the stock is cheap compared to its earnings and book value.
Zero Debt: The company has NO DEBT and an impeccable balance sheet (Debt Score: 10/10). This provides financial stability and reduces risk significantly.
The Caveat: Revenue and income growth have been weak. This is a value & momentum play, not a growth story.
🎯 Why These Levels?
Entry ($48.11): The breakout level. A close above here confirms buyers are in control for the next leg up.
Stop Loss ($42.43): Placed decisively below the SMA50 and a key support level. This level protects against a false breakout and a change in trend.
Take Profit ($62.22): Targets the next major resistance area, which aligns with a previous high. This offers an excellent risk-to-reward ratio.
⚠️ Risk Considerations
Sector Volatility: Tanker stocks are volatile and sensitive to oil prices and global shipping rates.
Low Growth: The fundamental thesis is based on value, not growth. The trade relies on the market recognizing this value.
Always use a stop-loss. This trade is invalidated below $42.43.
📢 Conclusion
TNK presents a high-probability breakout trade with a fantastic risk-reward setup, backed by:
✅ Strong technical breakout from consolidation.
✅ Powerful fundamental value (cheap valuation, zero debt).
✅ Excellent Risk-to-Reward ratio (1:2.5).
I am long on a breakout and close above $48.11, targeting $62.22.
🔔 What do you think? Does TNK have more room to run?
#Trading #Stocks #TNK #Tanker #ValueInvesting #Breakout #TechnicalAnalysis
Disclaimer: This is not financial advice. The company has weak growth figures. This is a value/momentum trade. Do your own research and manage your risk accordingly.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.