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This Stock Will Keep On Trucking

Knight-Swift is ready to roll.

I'd like to introduce guest contributor Ron Lembo to Ponsi Charts. Ron is the manger of Sonoran Vista Group, LLC in Scottsdale, AZ. 

As states begin the process of re-opening, there are obvious winners and losers. The shares of many stocks have already moved in order to reflect their respective new realities. 

We're searching for opportunities that may have been overlooked, and we may have found one in the transportation sector. 

As more people return to work, we naturally expect to see an increase in general commerce and trade. On the other hand, if businesses and consumers remain in lockdown mode, they will still need to receive items via shipment. 

This brings us to the chart of one company that may present an opportunity, Knight-Swift Transportation (symbol KNX). This stock is showing positive momentum that is likely to continue. 


On the monthly chart (right), the current price of KNX is well above its 12 period EMA, a sign of strong momentum to the upside. This time frame shows little resistance until the $50 area. 

The weekly uptrend (center) is consolidating recent gains. The path of least resistance is to the upside. 

On the shortest time frame (left), we can see the entry area, located in the area just below $40. 

Fundamental analysts may take issue with the company's valuation metrics, but as the price action of the past several months shows, this market is currently more focused on technicals. We feel Knight-Swift can do well in a variety of economic scenarios.  

Want to learn to read and analyze charts like Ed? CLICK HERE