CMRE: Looking to Bullishly Breakout with the Dry Bulk Index
Updated
Costamare has a history of following the moves of the Baltic Dry Index which tracks the charter rates of various different Dry Bulk Ships and recently we've seen BDRY (the ETF that tracks the BDI) double in value and it has taken many marine shippers up with it but CMRE despite trading at good valuations is yet to move out of its trading range which is typical for this stock as it usually moves just a bit slower than the BDI.
When comparing the two you can see the BDI has already broken out and is heading for the highs but CMRE has not made any meaningful moves up, however it is attempting a breakout with some hidden bullish divergence it formed at the previous support and is now above the 55 and 200 week moving averages.
If it follows the move the BDI has made we could see CMRE come up to test the 61.8% Retrace at $16.62 or the 0.886 at $22.45 at this point in time that would open up the possibility of an ABCD move being completed to the upside that could lead it all the way up to $38.40.
I will leave below some Related Ideas within the sector and the chart of the Baltic Dry Index ETF (BDRY)
When comparing the two you can see the BDI has already broken out and is heading for the highs but CMRE has not made any meaningful moves up, however it is attempting a breakout with some hidden bullish divergence it formed at the previous support and is now above the 55 and 200 week moving averages.
If it follows the move the BDI has made we could see CMRE come up to test the 61.8% Retrace at $16.62 or the 0.886 at $22.45 at this point in time that would open up the possibility of an ABCD move being completed to the upside that could lead it all the way up to $38.40.
I will leave below some Related Ideas within the sector and the chart of the Baltic Dry Index ETF (BDRY)
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CMRE after testing and confirming the 0.382 Support/Resistance zone as Support is now breaking out of a Cup with Handle pattern it formed on the daily with a Bullish Buy signal from the indicators above the 21-Day SMA. With this, CMRE should now be clear to run to make the 0.786 retrace up at around $14.17 before running into potential future resistance.
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