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Are Transportation Stocks Setting Up For Monday?

By Michele SchneiderStock MarketsSep 26, 2021 04:35AM ET
www.investing.com/analysis/are-transportation-stocks-setting-up-for-monday-200603082
Are Transportation Stocks Setting Up For Monday?
By Michele Schneider   |  Sep 26, 2021 04:35AM ET
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4-Transportation Stocks Chart
4-Transportation Stocks Chart

Friday the transportation sector, via iShares Transportation Average ETF (NYSE:IYT) made a comeback from the week’s lows along with clearing resistance from its 200-Day moving average (DMA) at $249.46. Next it will need to clear its 50-DMA at $252.16.

A strong transportation sector is important because this sector helps show the economic demand for goods. And with the holiday season just around the corner, we should see an increase in the movement of goods. Therefore, we should watch IYT along with specific companies that look to be setting up for Monday’s trading session.

Here are three symbols that have interesting chart setups for Monday if IYT continues to break through its 50-DMA.

  1. United Parcel Service (NYSE:UPS)
  2. Union Pacific (NYSE:UNP)
  3. JB Hunt Transport Services (NASDAQ:JBHT)

Currently, UPS is sitting under resistance from the low of 7/30 at $188.32. With support from the 200-DMA and from recent lows watch for UPS to clear and hold over its $188.32 price level to prove it can continue upwards.

Next, we have UNP which closed over its 10-DMA at $201.78 for the first time since Aug. 18. If UNP can stay over its 10-DMA and hold recent lows this is another one to watch for a trade entry.

Finally, JBHT offers a low-risk entry with support from the 50-DMA or from recent lows at $165.50.

One key point to remember is that IYT will need to clear resistance over its 50-DMA at $252.16. However, if IYT runs into heavy resistance from its moving average, stay cautious as this could hurt momentum for even the strongest transportation stocks.

ETF Summary

  • S&P 500 (SPY) Confirmed a bullish phase over the 50-DMA. Watch to continue over 445.
  • Russell 2000 (IWM)  Like this over 225.
  • Dow (DIA) 350 next resistance level.
  • NASDAQ (QQQ) 372.76 needs to hold.
  • KRE (Regional Banks) 67 next resistance area.
  • SMH (Semiconductors) 276.69 high to clear.
  • IYT (Transportation) Now it needs to clear the 50-DMA at 252.16.
  • IBB (Biotechnology) Choppy. 168.36 support.
  • XRT (Retail) Flirting with the 50-DMA at 94.82.
  • Junk Bonds (JNK) Holding but not going anywhere. Looks choppy.
  • IYR (Real Estate) Support range 107.80-105.24
  • XLP (Consumer Staples) 71.35 gap to fill.
  • GLD (Gold Trust) Needs an improvement in general momentum.
  • SLV (Silver) Still trending down.
  • USO (US Oil Fund) 51.40 needs to hold as new support.
  • TLT (iShares 20+ Year Treasuries) 146.66 potential support.
  • USD (Dollar) Needs to hold over 92.89.
  • DBA (Agriculture) 18.90 50-DMA to clear.
  • VBK (Small Cap Growth ETF) Looks weak if it can’t get back over 293.
  • GREK (Greece) Doji day with next support at 27.06.
  • JO (Coffee) Escaped us. Watching for a dip for a buy entry.
Are Transportation Stocks Setting Up For Monday?
 

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Are Transportation Stocks Setting Up For Monday?

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