Revisiting the Greenbrier
- Posted by Greg Harmon
- on February 11th, 2014
Not that Greenbrier. Back in October I uncovered a tanker play in A Hidden Transportation Play, Greenbrier, $GBX. The stock exploded 25% higher a week later before consolidating for the rest of the year. The chart below shows that it then made another push higher in January out of that consolidation, topping just over 38. Since then it has pulled back and tested the break out area, as the market pulled back. With that level holding firm and now a slight reversal higher it may be time to revisit the Greenbrier. The chart shows that there was accumulation all during the pullback. The momentum indicators are starting to turn, with the Relative Strength Index (RSI) going higher first and now clear of the mid line. The MACD has leveled but not turned up yet. The candlestick action Tuesday shows a bullish engulfing real body (the solid part) and a very bullish Marubozu. These have me excited to enter against a stop at the previous support, and an initial target on a Measured Move to 40.25. For the more technically minded this is also the target for a Positive RSI Reversal denoted by the higher low in price but lower low in RSI.
Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades from Amazon.
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through January 2014 Expiry and sign up here for the free 7 day trial before you pay.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Stalking an Entry on Constellation Brands
- Premium Earnings 2-8-16
- Top Trade Ideas for the Week February 8, 2016: Bonus Idea
- Top Trade Ideas for the Week of February 8, 2016: The Rest
- Top Trade Ideas for the Week of February 8, 2016: The Rest Premium
- Top Trade Ideas for the Week of February 8, 2016: The Best
- SPY Trends and Influencers February 6, 2016
- Macro Week in Review/Preview, February 5, 2016
- How this week’s Top 10 Performed, February 5, 2016
- Premium Earnings 2-5-16