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TORM plc (TRMD)

TORM stock forecast: buy or sell

Close on Sep 29th, 2020
$6.75 -0.01%
3 months performance
0.08%
Published: September 29th, 2020 - 7.25pm EDT

TORM stock outlook

  • TORM closed today at $6.75 (-0.74%) prior to reporting financial results at
  • Price is drawing a scaled uptrend since late June with higher tops and higher bottoms. Up to date, the uptrend marked a 14.8% gain since the beginning of this rally
  • 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.

Disclaimer:
The viewpoints written in this article are personal and not recommendations for you to buy or sell stocks. The author of this document does not know the specific situations of the reader, his or her financial statements 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 published for educative purposes only

TORM stock charts

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 just one buy setup eligible:

Uptrend buy setup

TORM stock continues to trend higher since in late June and marked a gorgeous 14.8% gain. Price marked a pull back in this uptrend at $6.34 on September 8, and since then it bounced up a 6.47%. Now, it's only 16.15% away from breaking out over its last top and resume the uptrend. The new buy point is therefore at $7.84. If you decide to enter this trade, the suggested stop loss is at $7.06

Buy setupBuy pointStop lossRisk
Uptrend buy setup$7.84$7.0610%

Should I sell TORM stock?

"To sell or not to sell", if you are holding TORM stock?. Like when we have to buy shares, choosing when is appropiate to sell is not a capricious decision, and we must adhere our own trading style. When selling, as well as buying, our strategies are very simple to use but are only valid for selling stocks you already own, not for shorting TRMD stock

A guiding principle is that you should never mantain a trading operation that shows a greater losses than those expected at the time of the buy. The timing to sell your stock always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell TORM stock?

Currently, TORM stock doesn't match any of our preferred sell setups, so if you hold TORM shares and your operation is in profit probably is not time to sell now

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 month for TORM

Technical analysis

Since in late June, TORM has been drawing an uptrend that so far marked a gorgeous 14.8%. The price line shows higher peaks and higher troughs, and along the way provided some entry points for those who wanted to invest. Latest pullback was on September 8, when price bounced at $6.34. Like in all uptrends, price needs to take breath and now price is moving in a range between $7.84 and $6.34

SMAs overview

Moving averages are indicators for traders to measure direction. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

TRMD SMAs chart

Supports and resistances

Market investors use supports and resistances to find price points on a chart that may work as barriers, containing the price of an asset to move up or down. Supports are levels where the price may stop as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down the support, it is likely to continue falling until meeting another support level. On the other hand, resistance levels are where the price tends to find a curb as it rises. Likewise, the price is more liable to "bounce off" at this level, and if it finally breaks this level, it will rise more easily until it meets the next resistance

The current resistances are:

  • R1: $7.12 (5.48% above)
  • R2: $7.84 (16.15% above)
  • R3: $8.55 (26.67% above)
  • The current supports are:

  • S1: $6.59 (-2.37% below)
  • S2: $6.34 (-6.07% below)
  • S3: $6.31 (-6.52% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. It is composed of three lines that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    TRMD RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to map the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. 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

    The RSI dropped below the overbought level of 70 in late August after just crossing to the overbough zone for 1 day (weak signal). The RSI value today was 47.19. TORM price sank a 12.34% since RSI lost the overbought zone

    TRMD RSI chart

    Earnings and financials

    Second-quarter investors call was hosted by TORM in mid-August after releasing the earnings report. The market estimate is a earnings of %s per-share of $0.96, that is a 152.63% lower than previous reported quarter.

    In comparison, the EPS for the same quarter last year was $0.07, so posted EPS means a drop of -100%. Revenue skyrocketed a 39.63% on an annualized basis in the Q2, from $166.3M to $232.2M last quarter.

    TORM is hosting the earnings call. Earnings reporting day has an additional risk for investors as the results disclosed can gap up or down the price with lower liquidity and not honouring your buy/stop-loss orders. It's always good to review company's website to confirm time and details on the earnings call and the earnings report.

    TRMD revenues and profits chart