Are transport stocks ready for a big move next week?


On Friday, the transportation sector (IYT) made a comeback from this week’s lows, as well as clearing resistance from its 200-day moving average (DMA) at $ 249.46.

Then he will have to erase his 50-DMA to $ 252.16.

A strong transport sector is important because this sector helps to show the economic demand for goods. And with the holiday season quickly approaching, we should see an increase in the movement of goods.

Therefore, we should be watching IYT as well as specific companies that appear to be gearing up for Monday’s trading session.

Here are three stocks that have interesting chart patterns for Monday if IYT continues to break above its 50-DMA.

United Parcel Service (UPS)

Union Pacific (UNP)

JB Hunt Transport Services (JBHT)

Currently, UPS is below resistance of the 7/30 low at $ 188.32.

With the support of 200-DMA and recent lows, be sure UPS clears and maintains its price point of $ 188.32 to prove that it can continue to rise.

Then we have UNP which closed its 10-DMA at $ 201.78 for the first time since August 18th.e.

If UNP can stay above its 10-DMA and maintain recent lows, this is another one to watch for a trade entry.

Finally, JBHT offers a low risk entry with support for 50-DMA or recent lows at $ 165.50.

A key point to remember is that IYT will need to eliminate resistance above its 50-DMA at $ 252.16.

However, if IYT encounters strong resistance from its moving average, stay cautious as this could hurt the momentum of even the strongest transport stocks.

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Analysis and summary of trading ETFs:

S&P 500 (SPY) Confirmation of a bullish phase on the 50-DMA. Look to continue on 445.

Russell 2000 (IWM) Like this on 225.

Dow (DIA) 350 next level of resistance.

Nasdaq (QQQ) 372.76 must hold.

KRE (Regional banks) 67 next resistance zone.

SMH (Semiconductors) 276.69 high to clear.

IYT (Transport) Now he should clear the 50-DMA to 252.16.

IBB (Biotechnology) Restless. 168.36 support.

XRT (Retail) Flirt with the 50-DMA at 94.82.

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The author may have a position in the titles mentioned at the time of publication. All opinions expressed here are solely those of the author and do not represent the views or opinions of any other person or entity.

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