Transportation company Kirby Corp. (KEX) had an up and down 2016 but 2017 looks like it's the right time for the stock to break out on the upside. Take a look at these charts.
In this 12-month daily chart of KEX, below, we can see can see an improving technical picture from an August low. In September, KEX rallied above the declining 50-day and 200-day moving averages and in October the slopes of both these averages turned positive. In early February, KEX dipped for a retest of the rising 200-day moving average line.
The On-Balance-Volume (OBV) turned up in September and recently made a new high for the move up leading the price action. The Moving Average Convergence Divergence (MACD) oscillator in the bottom panel is turning up for a cover shorts buy signal and perhaps an outright go long signal.
In this three-year weekly chart of KEX, below, we can see that prices are above the rising 40-week moving average line. A weekly close above $70 looks like it will be a breakout. The weekly OBV line is positive and the MACD oscillator has been in bullish territory since late November.
Bottom line: Traders could go long KEX on a close above $70 and add on strength above $73. A decline below the recent low at $62 would tell me this was not a good idea. Raise your sell stops when KEX closes above $73. Our initial upside price objective is $85.