This morning I wanted to take a look at another interesting chart. This chart will be on one of the drybulk shippers, which if you've been reading here at GrowYourFunds or listening to business television you probably know this sector is as hot as any right now. Excel Maritime (NYSE:EXM) will be our interesting chart of the day.
EXM traded as low as about $28 a share intraday on August 18th and since then the stock has surged to a current level of $68.19 a share. The chart is a beautiful one of huge gains on strong volume, then consolidation at lower volume levels before another leg up begins.
Look at the volume trends in this stock. The stock has been continually breaking out to new highs on record volume, which I view as a positive indicator in the short term.
Where will this stock go in the future? As someone who invests primarily on the fundamentals of the company I must say that this stock certainly seems like it is due for a pullback. Given the nature of the higher highs at record volume I would certainly steer clear of shorting this stock, as it hard to tell how much higher it could go in the short term.
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