Truckers Stocks Keep on Truckin’ Higher

• Posted by Greg Harmon
• on September 2nd, 2014

The S&P 500 is taking a pause and turning leadership over the the Russell 2000 Tuesday. But amongst this shift one group just keep moving higher. Three of them, Con-Way, Knight Transportation and Old Dominion Freight Lines are driving towards break outs and giving you a trade opportunity.

Con-Way had a brief pullback to reset the momentum indicators (RSI and MACD) through July. But since then it ran higher and has consolidated under resistance at 52 in a descending triangle pattern. As it moves above it, there is a target of 54 on the stock price.

After a drifting consolidation period that has gone on since May, Knight Transportation made contact with the 100 day SMA and is now moving higher. The series of moves higher followed by brief consolidating pullbacks suggest this leg could reach 26.25 before the next consolidation.

But the most impressive trucker of the bunch just may be Old Dominion Freight Lines. This stock has run higher from tax day in April to a peak in early June before a pullback. Since it started higher and cleared the June high it now carries a target of 73.20 on a AB=CD pattern. The key to this stock seems it needs to be on the right side of the 20 day SMA. Today is giving you the trading criteria as it is breaking above short term resistance at 67.60 with a natural stop under the consolidation at 66.25.

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