A Hidden Transportation Play

• Posted by Greg Harmon
• on October 15th, 2013

A few weeks ago Greenbrier, $GBX, was on watch in the premium service but it never triggered. After a quick dump with the market and a ride higher along the 20 day Simple Moving Average (SMA), it is right back at resistance ready to trigger a long position. The chart below shows that it has some strong potential as well. It has been building a bearish Butterfly Harmonic, with a Potential Reversal Zone (PRZ) at 35.75. This is where the Harmonic pattern would suggest it may top out before reversing lower. As I said, it has some resistance to get through at 26.20 first and then resistance higher at

30.36 along the way from the March 2011 high. It also is printing a Tweezers Top so tomorrow may not be the day. But the SMA are all rising now and the Bollinger bands are opening higher. It also has a bullish and rising RSI and a MACD that has turned up and crossed to positive, both supporting the upside. For the purist, it has had a series of higher highs and higher lows since November 2012 as well. It is in an uptrend. With the good report from CSX Corporation Tuesday night, could this be the catalyst?

____________________________________________________________________________________________________

Want to learn more about Dragonfly Capital Views?

Dragonfly Capital Views Performance Through September 2013 Expiry and sign up here for the free 7 day trial before you pay.

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