Don't Ignore This Chart

Two Bullish Charts In A Very Bullish Industry

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Delivery services ($DJUSAF) broke out of a bullish continuation cup with handle pattern a few weeks ago and appears poised for a further fourth quarter rally, albeit with some profit taking along the way.  Bullish continuation patterns require a prior uptrend and the DJUSAF certainly had that.  Check out the chart:


Personally, I love to see the handle form back to the rising 20 period EMA, which is exactly what the DJUSAF did here.  Now that it's broken out, I expect to see bullish action in companies within this industry group.  Two companies that recently posted strong quarterly results that beat Wall Street estimates should benefit from the technical tailwinds of the industry:

Of these two stocks, AAWW may be the better play simply because it has a much better seasonality record in the fourth quarter.  Technically, they both are strong and are buyable on heavy volume breakouts.

Happy trading!

Tom

Tom Bowley
About the author: co-founded Invested Central and served as the site's Chief Market Strategist for more than 10 years. His unique trading style combines both his fundamental and technical strategies to systematically manage risk while trading. A regular contributor to StockCharts.com's bi-weekly ChartWatchers newsletter since 2006, Tom's role at StockCharts has expanded significantly since he joined the company as a full-time Senior Technical Analyst in March of 2015. Learn More
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