POINT & FIGURE CHARTS OF TRANSPORTATION LEADERS SHOW BULLISH BREAKOUTS
POINT & FIGURE CHARTS SHOW TRANSPORTATION BREAKOUTS...My morning message wrote about four transportation stocks that were achieving bullish breakouts. A glitch in the system, however, prevented me from showing their usual bar charts. So I've improvised a bit to bring their point & figure versions. Unlike bar charts, p&f charts show alternating columns of Xs and Os. The X columns show rising prices, while the O columns show prices declining. Bullish breakouts take place when X column peaks are exceeded. The green X's show today's price gains.
C.H. ROBINSON AND LANDSTAR SHOW BULLISH BREAKOUTS... The green boxes in Chart 1 show C.H. Robinson Worldwide (CHRW) surging today to a new record intra-day high. The stock has exceeded its previous p&f peak established in 2018. The trucking stock is also today's biggest gainer in the Dow Transports. A second trucking stock is also breaking out. Chart 2 shows Landstar (LSTR) rising to a new intra-day record as well by also exceeding its 2018 p&f high. Bullish breakouts are easier to spot on p&f charts than on traditional bar charts. Those breakouts take place each time a previous X column is exceeded. The more prominent the previous peak being exceeded, the more important the signal. Like several shown in this message.
EXPEDITORS INTL. OF WASHINGTON AND UNITED PARCEL BREAK OUT AS WELL...This morning's message also mentioned two delivery service stocks that were achieving bullish breakouts. Chart 3 shows Expeditors Intl. of Washington (EXPD) breaking through its previous high established earlier this year to set a new record. Chart 4 shows United Parcel Service (UPS) rising above its 2019 peak at 120 to reach the highest level in more than two years. The stock is now challenging its p&f all-time set at the start of 2018 at 124. This morning's headline stated incorrectly that UPS had already established a new record. But it's getting pretty close to one. To repeat, the green X boxes represent today's price gains. And they look pretty impressive.
TIME AND TRENDLINES ON P&F CHARTS... All four charts show a number of upside breakouts taking place this year reflecting a bullish pattern of rising peaks and troughs. For time reference, calendar years are marked at the bottom of each chart; while red numerals mark calendar months. The last red numeral 7 on each chart marks the beginning of this July. The falling red trendlines are drawn at 45 degree angles over previous peaks. Price moves above those red resistance lines took place earlier this year and added to the credibility of the p&f price uptrends. As useful as point & figure charts are to spot breakouts, they should always be used in conjunction with traditional bar charts.
