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.
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Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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