Ryder System (R) made a deep correction in May but it is now showing some early signs of stability. Is this a time to probe the long side or to stand aside for further positive evidence? Let's drill down in a few charts.
In this daily bar chart of R, below, we can see that prices made a low in late December followed by a rebound to the underside of the declining 200-day moving average line. There was a shallow dip in March and another push higher in April that was unable to sustain its strength above the 200-day line for long.
R is now below both declining averages - 50- and 200-days. The volume pattern is inconclusive but the daily On-Balance-Volume (OBV) shows a rise from December to the end of April followed by a decline that has not broken the March low for a possible bullish divergence.
The Moving Average Convergence Divergence (MACD) oscillator is poised to cross to the upside for a cover shorts buy signal.
In this weekly bar chart of R, below, we see a mixed picture. R is still in a downtrend and below the negative 40-week average line, however prices had not made a new low since December.
The weekly OBV line may be forming a double bottom and the MACD oscillator has crossed to a fresh sell signal. Mixed.
In this Point and Figure of R, below, we can see that prices reached a downside price target. I have often written that reaching a downside price target is not a reason to buy but this does give us a stop point with a decline to $50.01 - a new low trade on this chart.
Bottom line strategy: We don't have a table banging reason to go long R at this juncture but we do have a clear risk point for traders who may want to probe the long side. Go long above $54.16 and risk below $50.