Danaos Volume Spike - Price Higher

Danaos Corporation (NYSE:DAC) continues its rapid stock price increase today (+20%) on volume that is already 2x average daily volume with more trading day to go.  The stock’s price has almost doubled in two days from the Monday close.  The stock appears to be making a strong move which may be signaling demand for shipping is increasing.  And if demand for shipping is increasing, that should be a strong sign that the economy is confirming its turnaround.

The stock’s price is trading well above it moving averages.  Both the 10-day simple moving average and the 20-day exponential moving average have sharp inclined slopes, with the 10-day above the 20-day.  The Chaikin Money Flow oscillator has turned positive for the stock as well.  These are all strong signs that this stock has become a bull after being beat down like so many for the past several months.  It appears to have been revived on heavy volume in the current and past day.

Danaos is an international owner of containerships. At the end of June, the company had a fleet of 41 containerships. Danaos charters its containerships under multi-year, fixed-rate period charters to a diverse group of liner companies, which range from 1 to 12 years for vessels in its existing fleet, and up to 18 years for its contracted vessels. Customers include China Shipping, CMA-CGM, Hanjin, Hyundai, Maersk, MISC, MSC, United Arab Shipping Corporation (UASC), Yang Ming and ZIM Israel Integrated Shipping Services. 

Stockcharts Chart HERE.