Home
News
- 1 The geopolitical situation affects the Scorpio Tankers Inc (NYSE: STNG) stock price as it falls 35%.
- 2 At press time, the STNG stock price is trading between $48 to $36.
- 3 June-end witnessed a death crossover that pushed the STNG price below $47.
The uncertain geopolitical circumstances impact the macroeconomic factors and companies across the industries. Prominent American shipping company, Scorpio Tankers Inc (NYSE: STNG) is navigating through the tides of such skepticism. It could be the potential reason behind the downtrend in STNG stock, which lost nearly 35% from a yearly high of $64.
The dynamics in the shipping industry across the globe are experiencing changes. The regulatory development is affecting maritime trade as well. The disparity in demand and supply in the countries suggests a transition in consumer demand patterns including loose demand for petrochemical raw materials in the Asian region and slower economic activities in “the world’s factory”, China.
Citing the aforementioned doubts, analysts turned towards downgrading the stock rating and price target for STNG stock.
Last week on Friday, July 21, 2023, Bank of America, the American financial services company, made the cut in price target and downgraded the stock rating. Earlier the bank had set a target of $60, which dropped to $45, and changed the rating from “buy” to “neutral.”
Though the tanker shipping company reported impressive earnings in the previous quarter, the instances mentioned earlier could affect the second quarter earnings to be posted on August 3, 2023.
STNG Stock Price Movement
Despite the sluggish start with the new year, STNG stock price rallied and accumulated up to 45% from $44 to $64. The shipping company posted negative earnings for Q4 2022 that month which resulted in pessimistic sentiment around STNG stock.
The uptrend lasted for less than a month and a bearish reversal in the stock price formed a double-bottom pattern.
Just before the earnings results for the first quarter of 2023, STNG stock price started falling and shed up to 25%. Currently, the stock price is trading between $48 to $36. A demand zone is formed above the range between $48 to $53 suggesting the sellers are active and making the price stay low.
The range between $28 to $36 formed a demand zone inferring the efforts to test the lows likely to be reversed.
Currently STNG stock is trading at $42.75 gaining 4.24% in the last intraday session on Monday. By June end, the stock price witnessed a death crossover of 50-day and 200-day EMA pushing the price below $47.
MACD saw a negative crossover indicating more selling down the line. RSI is at 44 showing STNG is currently at neutral zone and expecting a consolidation move ahead.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
