Don't Ignore This Chart!

Ryder Driving The Wrong Way

 | 

Ryder System (R) was having a huge 2016 until the past several days.  Profit taking has kicked in and R has dropped 10% in that brief span.  The obvious question from a trader's perspective is.....when does it make sense to jump in on the long side.  Well, I tend to gradually enter a longer-term healthy stock that's struggling near-term.  So here's the daily chart to first look at short-term support levels:


The negative divergence suggests we could see a 50 day SMA test and a MACD centerline reset so that suggests perhaps an entry closer to 73.  The prior resistance at 70 should provide solid price support there now so I'd consider 70 as a second entry.  Momentum appears much stronger on the longer-term weekly chart as follows:

With strong weekly momentum, I'd be interested on a 20 week EMA test, which currently resides at 71.62.  Therefore, the 70-73 trading range seems appropriate for accumulation with a closing stop a little beneath price support.  Let's call it 69.  The target would be the recent price high near 85.

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
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus