What's Next For Globus Maritime After The Stock's Rally

Globus Maritime LTD. GLBS shares traded higher Monday after the company reported a total comprehensive loss of $800,000 for the first quarter. This compares to a $9-million loss in the year-ago period. Revenue rose from $2.3 million to $5.2 million.

Globus Maritime was up 2.57% at $5.19 at the close Monday. 

Globus Maritime Daily Chart Analysis

• Shares were falling the past few months, but now look to have broken out in what technical traders call a falling wedge pattern. Shares have been able to form higher lows since the breakout.
• The stock is trading above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock is likely in a period of consolidation.
• The 50-day moving average may hold as an area of support, while the 200-day moving average may act as an area of resistance.

Key Globus Maritime Levels To Watch

• The stock looks to have broken out of a falling wedge pattern and is now formed into an uptrend.
• This bullish reversal pattern happens after the stock makes a large run up and starts pulling back. The slope of the line connecting the highs is much steeper than the line connecting the lows.
• Since the stock was able to have broken out of pattern resistance, it now looks to have formed higher lows. In an uptrend this higher low trendline may hold as an area of support.

What’s Next For Globus Maritime?

Bullish technical traders would like to see the stock continue to hold along the higher low trendline. As this trendline continues to hold, bulls will continue to maintain control of the stock. Holding this trendline may gear the stock up to see a nice bullish move.

Bearish technical traders would like to see the stock fall below the higher low trendline. Bears also would like to see the stock fall below the pattern support. If the stock can fall below the pattern support, it could see a strong downward push.