Many longs here very aware of macro-economics and industry specific factors. Good stuff.
But there's TA as well to determine price movement. And whatever the company's prospects, the stock's short-term outlook darkened with yesterday's action. Low-of-day close on above-average volume below lower-end support. Not good.
I don't get this stock technically or fundamentally. Forget that pennant if this closes below $6.67 you have a major negative technical event. TNK is trading as if every analyst covering it is off in their EPS estimates SIGNIFICANTLY.
"In addition, co has agreed to issue new Class A common shares in the amount of $50 million to Principal, $30 million to Teekay Corporation and $60 million to a group of institutional investors, at a weighted average price of $6.76 per share. The remaining amount of the purchase price will be funded from Teekay Tankers' existing liquidity."
Do stocks ever LOVE below-market dilution?
Yes the 200-day line has been Support since March. That's the floor. The ceiling is currently $4. 3x since June MITK has threatened to breakthrough and close above $4, and all 3x it's failed. What you're looking for is $4 to give on volume and for MITK to close above it. Shorts are looking for the 200-day to give on volume and the stock to close below it before piling in. Sooner or later, one will happen.
…..up from .39 last year. $6.62 to $7.73 worn out since May. Never seen anything like this stock. Earnings and the Chart are screaming BREAKOUT and it collapses.
If this is the action on beating estimates I guess it's a good thing they didn't MISS by .04. Helluva payoff for those who gambled holding thru earnings and were 'right'. Miss on earnings and get cut in 1/2, beat estimates and what? Just lose 4%? #$%$.
This is one stubborn stock. Looks like it has every reason, technical, fundamental and sector to BREAKOUT but it just refuses to threaten $8. End of July vs. YE EPS looks like you could make a good argument for $9 easy. Don't get it.
Dunno about earnings but TNK is poised to Breakout again. 3rd test of resistance at $7.73 and I always say 3rd time is usually the Charm. TNK really is one stubborn stock though, all things especially it's EPS Estimates considered.
BREAKOUT WATCH for possible breakout above 7.88, no resistance in area just above.
Type: True breakout from triple resistance.
Target: 8.64, 13.4%
$1.36 EPS for the year? Just a measly 7 multiple gives you $9.52. Yet this stock's chart is as much a threat to collapse as it is to run.
I'm sure those August $10's are cheap. $10 in 4 weeks is a helluva bet. Hope you get paid big time.
Gap to fill at $7.37. See how it closes today and on what volume. But if today sees HOD close or even close on above-average trade, I'd say at least $7.37 is a good bet on this move.
If it closes back under the 50-day, Fughedaboudit, as they say.
Gaps tend to fill and there's one at $7.38 now after Thursday's open. It didn't fill Friday and I'm glad because if it had I'd be betting TNK was heading lower after seeing where it closed. If this stock heads lower below $6.50 on volume without filling that gap, it means that there some pretty significant negative fundamental responsible for it. Something that would be self-explanatory come 2Q Earnings.
This week, maybe as early as tomorrow, is going to be interesting either way. Interesting exciting, or interesting like a kick in the balls. Because this chart has to reconcile one way or another, soon.
Only 2 possibilities: either those #'s are correct and this stock is being played now before it BREAKS OUT thru $7.75 on it's way to double-digits; or, Q2 is not going to show that same growth and TNK is in fact on it's way back down lower past $6.50.
$6.86 is the 50-day average and I was very glad to see TNK close above it on Friday. But this stock is literally at an inflection point right now. $6.93 is either a floor or a ceiling for the next 3 to 6 months.
Hate seeing Dilution announcements and SELL Ratings come out just when a stock is threatening Technical BREAKOUT. Co-incidence my aszs.
Many would think your scenario is far-fetched but that's exactly how these basters work. No way to prove it but if this does BREAKOUT through $7.73 now on volume this UBS downgrade was literally criminal imo.