Capital Product Partners (CPLP), the shipping NASDAQ-traded stock, looks well-positioned for further upside from a technical analysis perspective.
Longer-term technical analysis shows that CPLP shares have strong support at the 4-year old uptrend line starting from the August 2011 low.
Moreover, CPLP is above the 2011 high, which is now acting as support @ $7.26 (Chart 1).
Chart 2 shows that CPLP is well-supported by Fibonacci analysis, as it has rebounded nicely from all crucial levels and is now above the 61,8% Fib level, located @ $7.75. This level is now the first support level for buyers.
From a shorter-term perspective, last week’s “bullish hammer” candlestick (week closing way above its lows) confirmed that short-term sentiment has reversed to bullish after the recent downmove, with more upside potential being possible even if some profit-taking decelerates the ongoing upmove.
The bullish scenario measured target is located at around $10.50, where the 7-year top is located too.
Please read the Disclaimer!