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Gator's Chart of the Day: OSG

It takes a special kind of trader to mess with shipping stocks.  If you don't have nerves of steel and a strong stomach to ride the volatility don't even consider it.  I doubt you will find any analyst (or sane person) that recommends a shipper with the oversupply that is pervasive in nearly all segments of that transportion group.  Don't bother looking at the financials.  They all stink.

The Trade
Tuesday produced a bullish engulfing candle as the stock made a 9% move on heavy volume.  The 50 day sma has flattened and is just now joining the 20 day in a move higher.  This trade will require relatively wide stops so don't go crazy with position size.

I wouldn't want to chase so the entry really needs to be somewhere between the 50 day (6.50) and 7.20.  If the first bite is near the top of that range there will be 10% downside in this trade.  It is worth the risk as the upside could test the 200 day and that is 33% above the entry range.  Again, keep your position size smaller than usual on this one if you choose to trade.