Old Dominion Freight Line Is Ready to Roll Again

Here's what traders could do now.

Many transportation, shipping and logistics companies have suffered declines in recent months, but some names have started to recover. Let's check out the charts of Old Dominion Freight Lines (ODFL) .

In this daily bar chart of ODFL, below, we can see that prices have equal lows in May and June, and have rallied to test and break the declining 50-day moving average line. Closing above the early June highs is the next technical hurdle to clear. The slope of the 200-day line is negative and intersects around $205.

The daily On-Balance-Volume (OBV) line shows weakness from January but now shows some steadiness and hopefully a reversal to the upside.

The Moving Average Convergence Divergence (MACD) oscillator has made higher lows as prices made equal lows in May and June. This is a bullish divergence and can foreshadow higher prices ahead. The MACD oscillator is not far below the zero line and we could see a buy signal soon. 

 

 

In this weekly Japanese candlestick chart of ODFL, below, we can see some improvement. Prices are showing buying interest around $240.

 

ODFL is still below the declining 40-week moving average line but the weekly OBV line shows a rise in the past three months and the MACD oscillator is very close to a cover shorts buy signal.

 

 

In this daily Point and Figure chart of ODFL, below, we can see a potential upside price target in the $324 area.

 

In this weekly Point and Figure chart of ODFL, below, we can see that prices reached a downside price target in the $283 area. A trade at $274.19 should improve the picture.

 

Bottom line strategy: Traders could use the current weakness in the price of ODFL to probe the long side. Risk to $239. On the upside look for gains to the $324 area.

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