Overseas Shipholding Waiting for a Break Out?

Published on Thursday, 05 January 2012 19:28 Written by Christian Paolinetti

New York, January 5th (TradersHuddle.com) - Shares of Overseas Shipholding Group, Inc. (NYSE:OSG) closed the trading session at $11.12 near its 50 day moving average currently set at $11.49. Overseas Shipholding's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

Overseas Shipholding Group, Inc. (NYSE:OSG) maintains a fleet of marine transport vessels. The Company charters its ships to oil majors, traders and United States and international governmental agencies. Its ships transport crude oil, refined petroleum products and natural gas.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $9.05 and calculated resistance at $11.90. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Overseas Shipholding shares.

Traders should evaluate their trade if they want to establish a position on Overseas Shipholding given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.