Mullen had a great week last week. Check out the chart.
That is very bullish enthusiasm. The volume soared to almost 3 month highs as the stock broke above a solid resistance range of $23.00 - $23.50.
The target for the measurement of the double bottom would be in the $27.35 range. Take the difference between the lows (19.43 and 19.67, we'll call it 19.50) and the centre of the double bottom at 23.42. This calculates to $23.42 - $19.50 = $3.92. Add $3.92 to the centre peak level of $23.42 = $27.34.
Pretty strong even from here.
Here is another major Canadian trucking firm, Transforce.
This one also had a nice move above a 4 month resistance level of $21. The MACD made a nice move to cross above the signal line and create a positive histogram. The volume was also slightly above average.
Investors in both cases were willing to pay more for these stocks than any time in the last 4 months. That's bullish behaviour! Look for this to move higher. If these breakouts fail, that would be more telling about where the market is going next, but this is a bullish move in a key sector that says things are getting better.
Good trading,
Greg Schnell, CMT.
