PACCAR (PACR) represents an important link in the movement of goods. PACCAR is the parent company of Kenworth, Peterbilt and DAF. Trucking companies buy new trucks to replace the old fleet as it wears out and they add additional units when they have new demand.
When investors are anticipating a build on the PACCAR order book, this can be an early indicator of new trucking demand. The chart below shows the SCTR jumping up making PCAR one of the best stocks in the market based on price movement. The Relative Strength is breaking out to new 7 month highs which has not happened since 2014.
The price is accelerating above the red line support/resistance. While we are currently at the price area that has been part of the topping structure, this chart could be a great signal of a bigger bullish picture if the price can start to push through this area. Should be one to watch through May.
Have a good weekend.
Greg Schnell, CMT, MFTA.