Some Transports Trades

I thought the industry group looked interesting so I thumbed through all 145 charts and came up with  few good looking possible trades..


CP Short

 Here CP is in a bearish ascending wedge with a very negative 3C daily chart. There may be one more false upside breakout, but it's a chart to watch and consider.

 A closer look at the wedge, any breakout (false) would probably be in the area of $69-$70. You could also wait for a break below the wedge around $66 or a combination of the two in a phased in approach for a better average price.

KSP Long

 This one looks like a nice base by price action alone.

 3C seems to confirm the base and it looks like stage 2 may be coming up shortly. Watch for a breakout above the $5.75 area on volume.

LFL short

 This looks a lot like a classic rounding top. 3C is calling it a top as well. The recent bounce provides for a lower risk entry at a good price point.

 My moving average screen clearly shows the short call on the trade. RSI can't get off its knees even on the bounce.

 The trend channel shows a reasonable stop (end of day) around $31.60 or so.

ONAV Long

 a Bullish descending wedge with excellent upside potential. This could be a 600% gain if the implied target of the wedge plays out. Certainly a good risk:reward ratio.

 3C likes the trade a lot as well. As usual, out of the wedge we have some lateral base building in which 3C has gone into a positive leading divergence.

 Here we see some obvious support on goo volume. It seems the accumulators are willing to aggressively support the trade-a good thing.

SFL Short

 3C is in a leading negative divergence, the most powerful kind and on a daily chart!

Here we see a clear top that has broken down, there's a small consolidation flag, but I'd look at the bigger picture here and give the trade some room to bounce so long as it doesn't take out $20.50 on a close. The risk:reward looks good in this trade as well so do the chances of a successful trade. Look at the volume!

These will be on the list tomorrow. If you have any questions, feel free to shot me an email.

I do not recommend multiple trades in the same sector unless you are long one and short another (a hedging strategy) or you treat similar trades (2 longs) as one for risk management purposes.