FROO trade ideas
Frontline LTD on verge of breaking out. Entry level $9.25
Price target $11.50 20% potential gains.
Stop loss $9.25
Average analysts price target $10.70
Average analysts recommendation BUY
Short interest 4.57%
P/E ratio 23.25
Company profile
Frontline 2012 Ltd. is a commodity shipping company, which engages in the ownership and operation of tankers. It serves crude oil, petroleum product, drybulk, and liquefied petroleum gas markets. The company was founded on December 12, 2011 and is headquartered in Hamilton, Bermuda.
Long Shipping Short RailShipping of crude oil during trade uncertainty increases because supply routes increase therefore rent times increase. Rail data continues to weaken without a meaningful reaction from stock prices.
Fro reversal short position Hello ,
This is my first time doing a technical analysis like this so please , any constructive criticism or feedback would be great. after a less than savory earnings report I think that Fro could be heading for a trend reversal over the next few day's / weeks . though I am unsure where i should start my short position I am fairly certain that this isnt just consolidation by the market on the long term uptrend.
FRO Long PlanOnce FRO holds above 23.6% fib retracement and confirms uptrend I plan to enter and exit around 9.13 with a 3% stop loss.
$FRO Long on this Short Check it outNYSE:FRO
NYSE:FRO
As you can see on the above chart have a bullish Divergence on the 4-Hour chart is a very strong bully signal I will not be taking a sizeable position due to the extreme amount of volatility in the current stock market I feel this will offer a decent hedge against some of my other.
FRO LongPhenomenal risk/reward at these levels. Has finally completed an ending diagonal. Commonly in ending diagonals the price overshoots the trendline causing a throw-over due to excessive bearishness or bullishness. Also at long-term support of $5.90.
While the price could potentially fall as low as $5.56, which is its lowest level since the stock has publicly traded on the NYSE, I do believe that the current levels present one of the best risk/rewards of the entire stock market. While I am primarily a technical analyst the fundamentals over the next few years for this industry are looking bright after a multi-year bear market. As they say, price moves before fundamentals.
Stock is a potential multi-bagger and unless you believe it is going to zero the current levels are amazing. This stock has been on my radar for 2+ years and is now forming a high probability bottoming pattern while industry peers are off their lows. Speculation is a game of probabilities and they don't get much higher than FRO currently offers.
'Be Fearful When Others Are Greedy and Greedy When Others Are Fearful'
Fundamentalists, the technicals are now on your side.
FRO monthly cycle and bullish consolidation/flagFRO cycles fairly reliably on monthly and quarterly intervals. Has been on a slow consolidation since 10/2016 and oscillated on monthly intervals since then forming a bullish flag.
About to go up for a small profit with fairly low risk. Currently sitting on a support line. Expect a gap open on earnings and dividend news in mid Feb.
Also a possibility of a strong breakout past breakout $7.50. Will reevaluate position as it approaches the TP.
OPEC and Seasonals - SellMarket normally goes into backwardation in FFAs after new years and shipping volumes falls when refineries go into maintenance and cut their crude processing demand. This year, in particular, it should fall even more given the cuts being implemented as per media in the last couple of days. A hot tip to follow the fixtures done is to download VLCC Fixtures (iPhone) from Frontlines own chartering department which provides and overview of cargos/ships/last done. Furthermore, bunker fuel is representative of a large freight cost component which also follows oil upwards and thus is currently putting earnings pressure on all shipping companies. Hence to conclude within jan-feb 2017 this stock should fall to its lows due to OPEC cuts, cost explosion in bunker and seasonal maintenance of refineries, thus the anti-trade of oil short term.
Patience Pays...Tempting to go long at the next test of the trendline, but with the resistance zone ahead I would rather wait. Potential for a better long entry once price has left the area of resistance from 70.50-71.50
Going long the "Pump" Well I don't really like to trade low priced stocks due to the ease of manipulation in them (Even if its NYSE listed). So this is a trade based simply on what "penny/OTC" traders know as the quote on quote "pump" . Good volume supports the breakout, so I entered long through options.
The position:
Bought +10 AUG 15 3.5 Calls
The trade:
Exiting at a loss if we get a daily candle close below yesterday's gap.
Exiting in profit if price nears the 4.40 / 5.00 area.
Note: I will be considering a short position at the 4.40 / 5.00 area, due to the reality that this is most likely a pump & dump just like every other time it was pumped and then dumped!
Simple, and straight to the point. =)
Happy trading folks, cheers! =)
