Old Dominion Freight Line: The Truck Could Be Backing Up

 | May 26, 2017 | 2:18 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

odfl

Old Dominion Freight Line  (ODFL) rallied until early December, but then a nominal new high in early March was not confirmed by our indicators.

ODFL now looks vulnerable and could back up below its April low.

In this daily chart of ODFL, above, we can see a weakening pattern to our indicators since early March. When ODFL rallied in February, the trading volume did not expand and the daily On-Balance-Volume (OBV) line failed to turn up with the price action, suggesting that traders and investors sold the rally. The OBV line has continued to decline and suggests further aggressive selling.

The Moving Average Convergence Divergence (MACD) oscillator moved below the zero line in March for an outright sell signal. Prices are above the rising 50-day and 200-day average lines, but the two lines have narrowed and we could see a dead cross in the weeks ahead.

In this weekly bar chart of ODFL, above, we can see prices are above the rising 40-week moving average line, but the line could be tested in the near term. The weekly OBV line has been weak for several months and the weekly MACD oscillator is still pointed down.

In this Point and Figure chart of ODFL, above, we can see a downside price target is suggested.

Bottom line: The charts and indicators on ODFL are not screaming "sell," but they have weakened and caution is warranted. If long, I would suggest raising sell stops to a close below $83.

Columnist Conversations

View Chart »  View in New Window » BA chart I'm STALKING this one for a buy trigger........
View Chart »  View in New Window »   WEEKLY
BABA is still dancing on key weekly support here.  Wait for a trigger! View Chart »  Vi...
BABA is still dancing on key weekly support here.  Wait for a trigger! View Chart »  Vi...

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by

COLUMNIST TWEETS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.