Are Transportation Stocks Setting Up For Monday?
Michele Schneider | Sep 26, 2021 04:35AM ET
Friday the transportation sector, via iShares Transportation Average ETF (NYSE:IYT) made a comeback from the week’s lows along with clearing resistance from its 200-Day moving average (DMA) at $249.46. Next it will need to clear its 50-DMA at $252.16.
A strong transportation sector is important because this sector helps show the economic demand for goods. And with the holiday season just around the corner, we should see an increase in the movement of goods. Therefore, we should watch IYT along with specific companies that look to be setting up for Monday’s trading session.
Here are three symbols that have interesting chart setups for Monday if IYT continues to break through its 50-DMA.
- United Parcel Service (NYSE:UPS)
- Union Pacific (NYSE:UNP)
- JB Hunt Transport Services (NASDAQ:JBHT)
Currently, UPS is sitting under resistance from the low of 7/30 at $188.32. With support from the 200-DMA and from recent lows watch for UPS to clear and hold over its $188.32 price level to prove it can continue upwards.
Next, we have UNP which closed over its 10-DMA at $201.78 for the first time since Aug. 18. If UNP can stay over its 10-DMA and hold recent lows this is another one to watch for a trade entry.
Finally, JBHT offers a low-risk entry with support from the 50-DMA or from recent lows at $165.50.
One key point to remember is that IYT will need to clear resistance over its 50-DMA at $252.16. However, if IYT runs into heavy resistance from its moving average, stay cautious as this could hurt momentum for even the strongest transportation stocks.
h2 ETF Summary/h2- S&P 500 (SPY) Confirmed a bullish phase over the 50-DMA. Watch to continue over 445.
- Russell 2000 (IWM) Like this over 225.
- Dow (DIA) 350 next resistance level.
- NASDAQ (QQQ) 372.76 needs to hold.
- KRE (Regional Banks) 67 next resistance area.
- SMH (Semiconductors) 276.69 high to clear.
- IYT (Transportation) Now it needs to clear the 50-DMA at 252.16.
- IBB (Biotechnology) Choppy. 168.36 support.
- XRT (Retail) Flirting with the 50-DMA at 94.82.
- Junk Bonds (JNK) Holding but not going anywhere. Looks choppy.
- IYR (Real Estate) Support range 107.80-105.24
- XLP (Consumer Staples) 71.35 gap to fill.
- GLD (Gold Trust) Needs an improvement in general momentum.
- SLV (Silver) Still trending down.
- USO (US Oil Fund) 51.40 needs to hold as new support.
- TLT (iShares 20+ Year Treasuries) 146.66 potential support.
- USD (Dollar) Needs to hold over 92.89.
- DBA (Agriculture) 18.90 50-DMA to clear.
- VBK (Small Cap Growth ETF) Looks weak if it can’t get back over 293.
- GREK (Greece) Doji day with next support at 27.06.
- JO (Coffee) Escaped us. Watching for a dip for a buy entry.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.