Yesterday saw FLNG pass the short sellers entry point at 13 kr, incidentally this was of course also the resistance. The high vessel rates we are seeing is the reason behind the breakout. Certainly this will make it more difficult for the short sellers. As we saw yesterday they don’t give up easily, but there is no way back now, resistance is broken and the trend is up supported by strong fundamentals.
Next resistance level is at around 14,50 kroner, but this one is very weak and I expect the stock to advance to a somewhat more comfortable levels between 16-18 kroner ahead of Q3 which should show a plus. Knowing that FLNG has the best vessels and leadership coupled with a newbuilds coming at the right time and in the most interesting market for years to come this stock might see several 10’s of kroners up before dividends set in.
Take your seats, short covering could make this a winner for the rest of the week.
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