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 

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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