Dry Bulk Freight Rates' recovery gained traction

On February 4th, I have posted on the possible recovery of the Dry Bulk Freight Rates as reflected by the Baltic Drybulk Index, BDI (go here). In the past 2 weeks, the BDI has recovered further (see Chart 1 below).


Chart 1: Baltic Drybulk Rates' daily chart as at February 15, 2008 (courtesy of Investment.tools.com)

At the same time, the 2 shipping stocks that I have mentioned, i.e. Maybulk & Hubline has rebounded quite strongly (see the 2 charts below). In fact, Maybulk has broken to the upside of its short-term downtrend line at the RM4.00 level, while Hubline is still below its short-term downtrend line (with breakout at RM0.51-53 level).


Chart 2: Maybulk's daily chart as at February 15, 2008 (courtesy of Quickcharts)



Chart 3: Hubline's daily chart as at February 15, 2008 (courtesy of Quickcharts)

Based on the above, I would reiterate that shipping stocks could be a good BUY for the medium-term.