Will SCORPIO TANKERS INC Break Out? A Technical Analysis Perspective.

Our stock screener has detected a potential breakout setup on SCORPIO TANKERS INC (NYSE:STNG). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:STNG.

Technical analysis of NYSE:STNG

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall STNG gets a technical rating of 10 out of 10. Both in the recent history as in the last year, STNG has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, STNG did better than 81% of all other stocks.
• STNG is one of the better performing stocks in the Oil, Gas & Consumable Fuels industry, it outperforms 76% of 214 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 64.50 - 71.80 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:STNG currently holds a 10 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, STNG also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 71.65. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 67.57, 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. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:STNG

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this 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.