The S&P 500 took a pause, Tuesday, turning leadership over to the Russell 2000. But in the midst of that shift, one group just keeps moving higher -- the truckers.
Breakout Driven
Three of them, Con-way Inc. (NYSE:CNW), Knight Transportation Inc. (NYSE:KNX) and Old Dominion Freight Line Inc. (NASDAQ:ODFL) Lines are driving toward break outs presenting traders with an opportunity.
Con-Way had a brief pullback to reset the momentum indicators (RSI and MACD) through July. But since then it ran higher and has consolidated under resistance at 52 in a descending-triangle pattern. As it moves above, there is a target of 54 on the stock price.
After a drifting consolidation period that has gone on since May, Knight Transportation made contact with its 100-day SMA and is now moving higher. That series of moves higher was followed by brief consolidating pullbacks, which suggest this leg could reach 26.25 before the next consolidation.
But the most impressive trucker of the bunch just may be Old Dominion Freight Lines. This stock has run higher from tax day in April to a peak in early June before a pullback. Since it started higher and cleared the June high, it now carries a target of 73.20 on a AB=CD pattern. The key to this stock seems to be that it needs to be on the right side of the 20-day SMA. Tuesday leant the trading criteria as it broke above short-term resistance at 67.60 with a natural stop under the consolidation at 66.25.