A shipping stock shaking off Red Sea turmoil and poised for big breakout, according to the charts

Published Tue, Jan 16 202412:32 PM EST

Marine shipper DHT Holdings, Inc. (DHT) has shrugged off headline risk lately, exhibiting positive momentum across time frames. The stock broke out of a 10-year basing phase in late 2022, providing a long-term tailwind that remains relevant today. Despite a sharp correction early last year, a long-term uptrend is intact per the rising weekly cloud model (shaded area on the chart). The cloud model, also known as Ichimoku, is a forward-looking indicator from Japan. The cloud model is derived from mid-points of price and projected forward. The slope of the cloud can be used as a gauge of the prevailing trend, and the boundaries can function as support and resistance. From a short-term perspective, DHT recently cleared initial resistance from the 50-day moving average and has the support of our daily momentum indicators. The minor breakout has also resulted in upward shifts in our intermediate-term indicators (see chart), which makes initial resistance from the November high look surmountable. A breakout above the November high would complete a year-long triangle formation in a bullish technical catalyst for the stock. DHT has also seen a notable shift in momentum relative to the S & P 500 after a sharp phase of underperformance in November and December. The chart has no signs of upside exhaustion from our overbought/oversold metrics, which differentiates it positively, noting many stocks look tired in the near term after strong runs in late 2023. Should DHT breakout out above trendline resistance, a long-term (1+ year) price objective as aggressive as $14.85 could be derived from the triangle formation. We would like to see the stock hold up above its 50-day MA, currently $10.25, to preserve its bullish near-term setup. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: (None) THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer. Fairlead Strategies Disclaimer: This communication has been prepared by Fairlead Strategies LLC ("Fairlead Strategies") for informational purposes only. 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