This powerful move, which landed Ryder on the Top Ten gainers list in the S&P 500, drove shares past the September peak. The narrow consolidation pattern Ryder has been working through since the Brexit low may have ended with a powerful upside resolution. The stock is now set up well for more upside.
Shortly after the Brexit low Ryder began to move sideways in a very tight range. The stock was unable to make a run at its 2016 highs but did manage to build a very solid base near its 200-moving average. With solid footing in place near the $62 area this 12-week pattern had strong potential. All Ryder stock needed was an upside jolt.
Yesterday morning's third-quarter earnings report provided the spark that drove shares through a major overhead trendline that links the April, June and July highs. Ryder now has plenty of room to run.
In the near term Ryder investors should consider the $68.50 to $66 area as a low-risk buy zone. This key area is now a very solid support zone. On the upside a key hurdle will be the April high near $72. Once past this level, the stock will be headed for a retest of its 40-week moving average near $73.65. The April high was held in check by this long-term indicator.
Also of note, Ryder sports a fairly high short interest ratio of 5.2. This will provide added fuel as shares continue to take out past monthly highs.