TORM plc (TRMD)

TORM stock forecast: buy or sell

TORM stock outlook

  • Counting yesterday, it's been 3 consecutive sessions in negative for TORM. Price closed yesterday at $7.37 after rising a 2.36%.
  • Looking at the chart, price is drawing an scaled downtrend since mid-April with lower tops and lower bottoms. shares price lost a -84.92% since the downtrend started.
  • TORM plc, a product tanker company, engages in the transportation of refined oil products worldwide. The company transports gasoline, jet fuel, naphtha, and diesel oil.
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Important:
The opinions written in this post are personal and not recommendations for you to buy or sell stocks. The author of this article does not have an understanding of the particular conditions of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for educative purposes only

TORM stock chart overview

Should I buy TORM stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is TRMD stock a buy?

In the current situation of TORM there is not any eligible buy setup. This doesn't mean we expect a selloff for TRMD in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell TORM stock?

When is it time to sell TORM stock?. Trading strategies let us to avoid impetuous decisions based on our emotions or the noise surrounding the market. When selling, as well as buying, our setups are very simple to follow and are only applicable for selling shares in your porfolio, not for shorting TRMD stock

As a rule of thumb, you should not keep a trade that produces losses greater than those expected by the time of the buy. The moment to sell your stock always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell TORM stock?

In the current situation of TORM there is not any eligible sell setup, so TORM stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell TORM stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating posted in the previous 30 days for TORM

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Technical analysis

TORM continues in downtrend since mid-April, and has lost a -84.92%. The stock drew 2 consecutive lower tops

SMAs overview

Moving averages are tools for traders to gauge market momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. You can found more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Traders use support and resistance levels as a way to spot price points in the stock price action that tend to act as barriers, preventing the price of a stock to move in certain direction. A support level is a level where the price may find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it will probably continue declining until approaching another support level. On the other side, resistance levels are where the price may find a curb as it rises. Again, this means that the price is more liable to "rebound" at this level, and if it finally breaches this level, it will rally easily until it finds the next resistance

The current resistances are:

  • R1: $9.49 (28.77% above)
  • R2: $10.75 (45.86% above)
  • R3: $48.86 (562.96% above)
  • The current support levels are:

  • S1: $7.31 (-0.81% below)
  • S2: $6.74 (-8.55% below)
  • S3: $6.53 (-11.4% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. By essence, the Bollinger Bands are lines that fluctuate around a moving average and vary the distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that gauges price movements to spot when the share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    When the relative strength (RSI) stays for so long below 70 and above 30, without any indication of overvaluation and undervaluation, the indicator loses its usefulness, and we are currently in one of these cases.

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    Earnings and financials

    Q1 financial event was hosted by TORM in mid-May after presenting the earnings report. TORM presented first-quarter earnings of $0.76 per share on sales of $202.1 million. The market estimate was $0.72 per share on revenue of $181.8 million.

    Same quarter last year, reported EPS was $0.35, so recently reported EPS is an improvement of 117.14%. Turnover exploded a 73.33% on an annualized basis in the Q1, from $116.6M to $202.1M last quarter.

    TORM presents earnings report on mid next August. Analysts estimate earnings of %s a share of $1.37, that is a 80.26% more than Q1. If you hold or you are planning to buy TORM shares, be careful as the earnings reporting day usually has a very high volatility, and price can gap up or down with unsually low liquidity and not respecting your buy or stop-loss orders. You can probably uncover more information about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.torm.com.

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