Frontline – Precious Cargo
Shares of Frontline Ltd. (USA) (NYSE:FRO) popped above an important resistance line of $6 on very heavy volume.
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Share of the company have been tanking over the past year but they seemed to have leveled off in the last six months. Then, today’s movement on very heavy volume could be a sign of good things to come for Frontline.
It seems today’s price movement is related to a report that demand for oil tankers is rebounding, with shipments of oil to China picking up dramatically. Technical traders should take note of today’s important spike in volume and price appreciation, it could be signaling a price reversal for the stock.
Given that oil prices staying over the $100/barrel mark, and the upcoming summer months tend to push oil prices even higher, the stock’s price movement may be signifying something bigger for company investors. Frontline (NYSE:FRO) is one to keep your eye on.
Frontline Ltd., through its subsidiaries, engages in the ownership and operation of oil tankers and oil/bulk/ore (OBO) carriers. It primarily transports crude oil; and raw materials, such as coal and iron ore.
FRO shares closed the day at $7.65, up 23.79% on 13.1M shares traded.