OVERVIEW: Trucking stocks have been acting well as of late and some appear like they may ready to hit the road to profits. The group staged a fierce rally that started in mid 2017 that yielded a 72% advance into early 2018 before the group went into an 18% correction that now appears to have ended with the group rallying 15% since the start of May. The current base the group is working through looks very similar to the prior one from early 2017 that spurred the big advance. That base went through a 20% correction that lasted a bit longer, six months, than the current three month base the group is working on now. There are a few stocks in the group that are currently trying to stage breakout attempts and a couple more in the closely related Shipping and Logistics space trying to do the same. Here is a look at the group chart before we move on to some individual names.
ODFL- The stock is in the process of staging a break out of a four month base and is still well with buying ranges. One concern here is the light volume on the recent push to new highs on Friday. Perhaps some light holiday trading into a long weekend is the culprit, but we would like to see some continuation here on some heavier participation.
SAIA- This stock bounced off the 200 day MA to start the month of May and has virtually run straight up since into new high territory. Like many trucking concerns the stock is a bit thinly traded and it too has left a bit to be desired in terms of breakout volume. The stock has moved up over 25% in four weeks, so players who do not want to trade a breakout here can look for a possible pullback at some point to get aboard if the momentum continues.
SNDR- This stock was a new IPO in April of 2017 at $19.50 and rallied over 50% before pulling back with the rest of the group near the start 2018. The stock has formed a four month cup shaped base that recently challenge old highs near $30 and last weeks pullback may be forming a handle area that could be a prelude to a new breakout.
JBHT- Shipping and Logistics company JB Hunt staged a breakout attempt this past Monday but was thrown back immediately. The stock quickly regrouped late Wednesday and pushed right back into new high territory by the close on Friday. Perhaps this second chance breakout attempt will stick after shaking out some weak hands.
LSTR- Our last look is at another Logistics firm in Landstar Systems. The stock garnered solid support at its 200 day MA during the course of its current four month base and has now pushed up into resistance near old highs close to $115. The stock has been a top earner in the group so we will be watching for a fresh breakout here.
SUMMARY- The economy appears to be growing at a solid pace which should be a catalyst for the group to continue higher. A wild card for the sector would be pullback in oil prices, which did take a big hit in Fridays session.
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