An Under-the-Radar Trade on Global Commerce

Star Bulk Carriers SBLK owns and operates a fleet of dry bulk vessels that "transport bulk commodities, including iron ore, minerals and grain, bauxite, fertilizers and steel products." Frankly I did not know this name before today, but the charts and indicators tell a bullish story we should not ignore. 

Let's check out the charts.

In this daily bar chart of SBLK, below, I can see that prices have rallied nicely the past year. SBLK trades above the rising 50-day moving average line and above the rising 200-day moving average line. 

The On-Balance-Volume (OBV) line shows us a rising pattern since November and tells us that buyers of SBLK have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.

In this weekly Japanese candlestick chart of SBLK, below, I see a positive-looking picture. Prices are emerging on the upside from a base pattern. Prices trade above the rising 40-week moving average line. 

The weekly trading volume has been increasing the past five months. The OBV line shows a positive trend since July. The MACD oscillator is in a bullish alignment above the zero line.

In this daily Point and Figure chart of SBLK, below, I can see that prices have reached an upside price target in the $26 area. The software should be generating a new and higher price target.

In this weekly Point and Figure chart of SBLK, below, I used a five-box reversal filter. Here I can see a potential upside price target in the $55 area.

Bottom-line strategy: Aggressive traders could go long SBLK in the $27-$26 area risking to $23. The $55 area is my longer-term price objective.

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