Dallas, Texas 04/17/2014 (FINANCIALSTRENDS) – NewLead Holdings Ltd (NASDAQ:NEWL) on the daily charts has been in a strong decline. The price movement yesterday was accompanied with very high volumes which is a hugely bearish sign for the stock in the near term.
The stock has been trading below its 50 day moving average and also its 200 day moving average and has seen no respite from the selling. The Baltic Dry Index which is considered to be a benchmark index to understand the Shipping industry has hit new lows which has affected the future outlook for a company like NewLead Holdings Ltd (NASDAQ:NEWL)
The momentum indicators for NewLead Holdings Ltd (NASDAQ:NEWL) are trading in negative zones but are not showing any signs of reversal and makes us believe that the downtrend in the stock might continue for a longer period of time. The relative strength index for the stock though trading in highly overbought zones is also not showing any signs that it would bounce back above the overbought zones.
On the weekly charts too, the stock is in a serious downtrend and all the momentum indicators along with the relative strength index is showing massive cuts and are not showing any signs of bouncing back from these levels. This is being followed up with high volumes which is as stated above shows the ultra-bearish tone that traders have for this stock.
NewLead Holdings Ltd (NASDAQ:NEWL) announced recently about a debt financing deal with a financial institution for providing finance for 75% of the purchase price of two vessels for approximately $35 million. The street seeing the downward trajectory in the shipping industry as a whole did not like such a deal and turned bearish on the stock as they believed the forward guidance for the sector as a whole was negative.