Planes, Trains and Automobiles….Well, er, Trucks

• Posted by Greg Harmon
• on May 13th, 2013

If it moves then its stock has had a good run. The transportation sector has been doing its job leading the market higher. Many stocks in this space are getting extended though so it is a little more difficult to find places to keep your money. But here are a few that look very good.

Allegiant Travel, $ALGT

Allegiant Travel, $ALGT, operates leisure flights so they area little out of the mainstream like Delta, $DAL or US Airways, $LCC. But from the chart below you can see it is near a break of resistance at 93 after rising from a pullback to near the 50 day Simple Moving Average (SMA). It has support for more upside from a bullish Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that is turning up and about to cross to positive. It has a Measured Move higher to 97 over 93, with 100 very near at that point.

Kansas City Southern, $KSU

Despite the toppy look at Norfolk Southern, $NSC and Union Pacific, $UNP, Kansas City Southern, $KSU, is ready to break out higher. A premium product pick last week, the set up is just starting to trigger. The move above the blue consolidation box carries an initial target of 121 with a Measured Move higher to 136.

Con-Way, $CNW

Con-Way, $CNW, is moving back higher, perhaps leading the trucking sector. Even though JB Hunt, $JBHT seems to be trying to shift gears, and Old Dominion Freight Lines, $ODFL stalling, Con-Way is in the midst of a Bearish Shark pattern that extends higher before a reversal to either 37.38 (at the orange 88.6% retracement) or 38.83 (on the green 113% retracement). With a rising and bullish RSI and a MACD that is also rising, it is set for the long haul.

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