Don't Ignore This Chart!

Ryder Driving The Wrong Way

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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 of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More
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