3 Gears Higher for Knight Transportation

• Posted by Greg Harmon
• on March 11th, 2013

Knight Transportation, $KNX, only trades about 500,000 shares a day but it is trying to get your attention. After a 7 month run lower it is revving up for more upside. Starting with the very near term, the last 6 weeks have been creating a Bearish Shark pattern. I know I said bearish but trust me this is good news. It does not reverse in this pattern until it hits a price of 16.80. Not a lot higher

but the bearish part is what may give you your entry. The Initial Price Objective should it reverse right at 16.80 would be a move lower to 16.20 and if through that to 15.76. Look for a hold at either to confirm a longer entry. But what if ti does not reverse? No problem. The Shark is broken but then the Cup and Handle pattern playing out over a longer base gives it a target higher to 19.68. On both of these charts there is current support for more upside from the bullish and rising

Relative Strength Index (RSI) and the Moving Average Convergence Divergence indicator (MACD) that is turning up on the signal line and crossed to positive on the histogram. But moving out to the weekly chart makes it even more interesting. This chart is building a Bearish Deep Crap pattern. Again the good news is that the Potential Reversal Zone (PRZ) does not come into play until a

price of 22.89 or 41% higher than Monday’s close. This view also has a bullish RSI and a MACD rising to support more upside. Are you ready to let Knight Transportation move your portfolio higher now?

Join the Dragonfly Capital Views Premium Membership

Sign up here to get deeper analysis and nearly 50 trade ideas every week.

Dragonfly Capital Views Performance Through February 2013 Expiry

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