Don't Ignore This Chart!

Negative Divergence Could Slow This Trucker

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The rally in the S&P 500 has been impressive and truckers ($DJUSTK) have been among the best performing industry groups, rising 17% over the past three months.  That actually places truckers as the leading industry group within the industrials over that time frame.   C. H. Robinson Worldwide (CHRW) has gained more than 20% over the past three months, but slowing volume and a negative divergence on its MACD suggests the majority of the rally may be in the rear view mirror.  Take a look at the chart:


The CandleVolume chart type shows wider candlesticks when volume is extraordinarily heavy and thinner candlesticks when volume is lighter than normal.  From the above, it appears as though CHRW is losing momentum to the upside in terms of both price momentum (MACD) and volume momentum (thinning candlesticks).  Be careful.

Happy trading!

Tom 

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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