Navistar Can Move You Higher

A quick one tonight. Just keeping it simple. When it comes to the world of big machinery Navistar has it all. I don’t only mean their line of products but also the technicals and intrigue factors that you like in a potential breakout play. Carl Icahn is involved, who cannot like that? There is 14% short interest, an automatic buy and cover mechanism built into the future. And look at the weekly chart. It is building a series of Cup and Handle patterns with the latest giving a projection to 58.50 on a move back over 38.50. The Relative Strength Index (RSI) is bullish and rising and the Moving Average Convergence

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Divergence indicator (MACD) is running higher as well. All signs point up. Look for a move above 38.50 as your entry on a stock trade. As an options alternative you might consider an October 40/55 Call Spread for about $3. Lighten the load up front by selling June 40 Calls for $1 if that suits your fancy.

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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.

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