Transportation provider Saia (SAIA) broke out on the upside in late October, soaring to over $50 from under $30 in about three short months. Prices have been catching their breadth, so to speak, in recent weeks, but more gains are likely in the weeks ahead according to our charts.
In this daily bar chart of SAIA, below, going back 12 months, we can see a multi-month base pattern in 2016 with an upside breakout in late October. Prices gaped above the 50-day moving average line as they went on a vertical climb.
The On-Balance-Volume (OBV) line turned up in July and saw a stronger response in late October. The OBV line has been steady or flat in the past two months but is just a small fraction from a new high. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but close to a crossover for a fresh go long signal.
In this weekly chart of SAIA, below, we can see both a significant decline and a strong recovery. Prices are above the rising 40-week moving average line. The weekly OBV line made its low in early 2016 when prices made their low. The OBV line has improved as prices have advanced and a new high in the OBV line would support the advance. The MACD oscillator has narrowed recently but it has not crossed to a liquidate longs signal.
In this Point and Figure chart of SAIA, below, we can see the current consolidation pattern in the $44 to $50 area. A trade at $51 would be an upside breakout and probably start a fresh advance.
Bottom line: Aggressive traders can go long SAIA here and add on strength above $51. Risk below $45 for now.