GE Shipping to purchase gas carrier, stock opens with a gap-up

Great Eastern Shipping, the second largest shipping company by market capitalisation as recently signed a contract to purchase secondhand gas carrier. The carrier is very large of nearly 81,605 cbm and that the 2006 built vessel is likely to join GE Shipping’s fleet in the second quarter of FY19. The stock of GE Shipping opened with a gap-up, but started correcting from the very beginning to fill the gap and is now trading 2.9 per cent down at 14:06 hours.

Currently, the company’s fleet stands at 48 vessels, which includes 34 tankers which are further bifurcated into 12 crude carriers, 17 product tankers & 5LPG carrier and 14 dry bulk carriers which are bifurcated into 1 capesize, 8 kamsarmax, 5 supramax. These hold an average age of 11.03 years, aggregating 3.92 mn dwt.

Currently, the stock of GE Shipping has formed a Rounding pattern after hitting a kind of Double Bottom at 52-week low levels of 266-267. The stock attempted to breach its major resistance at 325-326 levels on August 3 and 6, but seems to be failing to do so on closing basis. The stock is trading at its 100-day EMA level. RSI has retreated from overbought zone and relatively lesser volumes are not letting the stock surge further. Hence, the level of 329-332 would act as crucial level for the stock.