Triple Wide in Knight Transportation About to Rev Higher

• Posted by Greg Harmon
• on March 18th, 2015

Knight Transportation ($KNX) was a darling of the stock market as the Transportation Index was driving higher. And who can forget this image of a young Janet Yellen driving a semi then. But over the last 4 months it has done noting but move sideways. A quick look at the technicals in the chart though suggest it is well rested and ready to head to the beach following the FOMC statement and press conference. Huh?

The chart above shows several indications that the sideways consolidation may be ready to end. As the stock price hits the prior resistance level at 34.50 for the third time, the triple wide top might break higher. The Bollinger Bands® are opening to the upside as price moves higher. The RSI is bullish and moving higher as well. The other momentum indicator MACD is crossed up and rising. Also a positive. Finally there is a harmonic Deep Crab in the price action that has a Potential Reversal Zone at 38.34 above. Look for a move over 34.50 as a trigger to get long the stock.

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