Greenbrier, The One That Got Away….Or Maybe Not
- Posted by Greg Harmon
- on July 29th, 2014
I started following Greeenbrier, $GBX, in October as A Hidden Transportation Play. Since then it has had an incredible run higher, up over 250%. The trend still looks strong and the stock continues under accumulation. If you are in the name and have held through this run higher, then congratulations to you!
If not then this may be your opportunity to get involved. The chart above shows the run higher with all of the moving averages going up in parallel. but it also shows the price consolidating under resistance at 67.80 as it is running into the 20 day SMA. The last 3 times the price has touched the 20 day SMA the stock has moved higher. It may not happen this time but this gives you both a trigger and a stop for your trade. An aggressive entry could be to buy it now with a stop just under the 20 day SMA. A more conservative trade would be to wait for a break over that resistance to enter, using the same stop, but obviously a smaller position size to adjust the capital at risk.
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through July 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
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)
- Seeking Fortune in Fortune Brands
- Premium Earnings 8-29-16: Abercrombie & Fitch and DSW
- Top Trade Ideas for the Week August 29, 2016: Bonus Idea
- Top Trade Ideas for the Week of August 29, 2016: The Rest
- Top Trade Ideas for the Week of August 29, 2016: The Rest Premium
- Top Trade Ideas for the Week of August 29, 2016: The Best
- SPY Trends and Influencers August 27, 2016
- Macro Week in Review/Preview August 26, 2016
- How This Week’s Top 10 Performed August 26, 2016
- The Russell 2000 at 20 and 200