This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.
Source: unsplash.com
Did you know that we are still heavily reliant on oil?
The demand for oil has been increasing almost every year.
In other words, oil is still the bloodline of the world’s economy.
But this doesn’t necessarily mean that shares of companies in the oil and gas industry will soar or form new all-time highs.
Shall we go on an adventure to discover if the share price of Frontline is ready for a position trade which could also soar and form new all-time highs?
Brief History of Frontline
Source: frontline.bm
Frontline was founded almost 40 years ago, in 1985.
Like many other companies with a history, Frontline faced tough challenges, grew through acquisitions, and the provision of immense value to society.
It was a matter of time before Frontline became the world’s largest tanker company.
After being listed in the New York Stock Exchange, Frontline continued practicing its value of creating value. This time, it could return value to its shareholders.
Business Model and Financials
Here, let’s focus on the blue and red bars which represent Frontline’s total revenue and net income respectively.
Both its total revenue and net income are pretty inconsistent.
Its total revenue grew in 2016, shrank in 2017, grew in 2019 to 2020, before shrinking in 2021.
Its net income fluctuates wildly, being profitable in 4 of the past 7 years – 2015, 2016, 2019, and 2020.
This is off-putting for long-term investors.
As a position trader, should you be concerned about Frontline’s fundamental health?
Not so much.
What matters most is its price chart as your trading horizon is in the weeks or months, where it’s too short for most companies’ fundamentals to change materially.
Technical Analysis on Frontline (NYSE: FRO)
Looking at its price chart, you won’t know about the inconsistent earnings results Frontline has been facing for the past 7 years!
This is because the chart of Frontline is on a strong uptrend, defying gravity.
Besides, the share price of Frontline has been rising on the back of a declining S&P 500.
Did you notice a green arrow under its latest candlestick?
The green arrow indicates bullishness. But relying on the green arrow alone is not advisable as the Trend Impulse Factor indicator is able to tell whether the bullishness is likely to continue.
A dark green bar of the Trend Impulse Factor indicator suggests that there’s bullish momentum and it’s likely to stay.
Hence, you’ll want the bar of the Trend Impulse Factor indicator to be in dark green for a higher chance of being profitable too!
Since the current bar of its Trend Impulse Factor indicator isn’t dark green in color, shares of Frontline isn’t ripe for a position trade yet.
Conclusion
Source: frontline.bm
Frontline has come a long way to dominating the industry of midstream oil and gas.
Though its financials don’t look good, it’s price chart has been tearing.
The bulls are back, highly optimistic in the future of Frontline. However, this bullish momentum may be short-lived as the bar of the Trend Impulse Factor indicator isn’t dark green in color.
Trading stocks without a proper system can be highly risky. This is why the TradersGPS (TGPS) was created.
The indicators (red arrow and Trend Impulse Factor) will help you determine if a stock is ready for action to be taken. You won’t have to feel in the dark and make wild guesses.
Therefore, I’d keep this stock in my watchlist for the opportunity to buy for a position trade.
What should you do in Q4 2022 to grow your portfolio?
Stocks have been really choppy the past few weeks.
But as usual, it’s not the 1st time we have seen such volatility and it pays to constantly remind ourselves to focus on the charts and react accordingly.
The WORST thing you can ever do in a volatile market is to trade aggressively.
Before you know it, reversals will come and go at the most unexpected times to wipe you out.
This is why during such volatile times, you MUST know how to use the right strategies.
In fact, I can tell you as a trader of over 20+ years, profiting in a volatile market is not difficult.
The key here is to NOT fight the volatility head-on.
Lots of people like to challenge the volatility head-on, trying to make predictions or day trade and think they can exit with profits before a reversal happens.
That to me is fighting a losing battle.
Rather, 1 important concept you should understand is this – A volatile market does not mean ALL stocks are volatile.
As you are reading this right now, there are many stocks out there with strong persistent trends that we can capitalize on.
The only part that can be challenging is finding these ‘hidden gems’.
But once you know how to find them, you will literally possess a weapon that can help you find winning stocks with high win-rate while carrying very little risk.
As we see the market continuing to be volatile in the coming weeks…
It’s extremely important to know where and how to find real opportunities and what proven strategies to use that are meant for such situations.
I will be sharing certain strategies that work exceptionally well in such volatile situations to identify and sieve out winning ‘hidden gems’ stocks to capitalize in my upcoming LIVE training (100% free).
Click HERE and join me in my upcoming LIVE training…
And I will show you the full process from identifying winning stocks all the way to executing the trade, and how it can be done in just 15 minutes.
I will also be opening up questions to the floor where you can ask me to analyze ANY stock of your choice,
and I will show you how the TradersGPS system can help you determine if it’s a good buy, WHEN to buy, and WHEN to sell for profits.
Click HERE to register your seat before we hit full capacity!
