Don't Ignore This Chart!

Two Bullish Charts In A Very Bullish Industry

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Delivery services ($DJUSAF) broke out of a bullish continuation cup with handle pattern a few weeks ago and appears poised for a further fourth quarter rally, albeit with some profit taking along the way.  Bullish continuation patterns require a prior uptrend and the DJUSAF certainly had that.  Check out the chart:


Personally, I love to see the handle form back to the rising 20 period EMA, which is exactly what the DJUSAF did here.  Now that it's broken out, I expect to see bullish action in companies within this industry group.  Two companies that recently posted strong quarterly results that beat Wall Street estimates should benefit from the technical tailwinds of the industry:

Of these two stocks, AAWW may be the better play simply because it has a much better seasonality record in the fourth quarter.  Technically, they both are strong and are buyable on heavy volume breakouts.

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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