Truckers Driving Higher into Year End

• Posted by Greg Harmon
• on December 16th, 2014

The transportation sector has had a great 2014. That is until the last month. With the fall in crude oil the railroad stocks, a big part of this sector took a hard right to the face. Many of them transport crude oil. That is not all that they transport, but that is a story for another day.

Left in their wake, the trucking stocks have had mixed results. Some are falling and some have just spent the time consolidating. But doesn’t cheap crude oil lead to cheap gas and diesel? Sorry for attempting to add a narrative. What is important is not how they should react but how they are starting to react.

Here are two companies, J.B. Hunt Transport Services, $JBHT, and Knight Transportation, $KNX, that look ready to shift gears and drive higher into year end for whatever reason.

J.B. Hunt is one that consolidated. In this case between a price of 79.60 and 82.60. That is until Tuesday. Breaking the range higher, it carries a Measured Move with it to 91. And momentum indicators support it. The RSI held at the mid line and is rising again. And the MACD is crossing up, also a buy signal.

Knight Transportation went through a bit of a pullback. This reset the RSI lower, while it held over the mid line. The MACD is now leveling as the RSI is rising. The price also bounced and is now crossing the 20 day SMA as it moves higher.

Keep an eye on Heartland Express, $HTLD, Swift Transportation, $SWFT, and Werner Enterprises, $WERN, as well. All of their charts are looking similar.

Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades.

 

---

 

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through November 2014 Expiry and sign up here

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