There are so few breakouts in this tape that it makes stocks that have cleared resistance really stand out. This is why we were excited to come across Grindrod Shipping (GRIN) thanks to Austin Hankwitz’s latest post:
Austin notes that GRIN is among Seeking Alpha’s highly-rated names according to their “Quant Rankings”:
Quant Ratings are an objective evaluation of each stock based on data, such as the company’s financial statements, the stock’s price performance, and analysts’ estimates of the company’s future revenue and earnings. Over 100 metrics for each stock are compared to the same metrics for the other stocks in its sector.
Because GRIN ranks highly by fundamental metrics, and a case can be made for it from a technical perspective, we highlight it as a new long idea below.
Among our existing ideas, we would close out long positions in Corning (GLW) because it has an overbought downturn. We recommend revising the stop-loss level for Trinseo (TSE) to $52.33.
Grindrod Shipping (GRIN) is our newest long idea:
GRIN has confirmed a breakout above former resistance from last September in an extension of its long-term uptrend. The breakout yields a long-term projection of approximately $29.00 based on a measured move.
Momentum is positive behind GRIN across multiple time frames, according to the MACD indicator. Surprisingly, the stock is not overbought from an intermediate-term perspective, supporting upside follow-through.
Because it has broken out in a weak tape, GRIN has bullish relative strength versus the S&P 500 Index (SPX). However, the weaker tape also presents risk inherent to long positions, so we recommend keeping tight stop losses.
Grindrod Shipping (GRIN, $22.40)
Target : $29.00
Stop-Loss: $20.65