Tuesday, December 18, 2012

C. H. Robinson (CHRW) pierces 2-year channel resistance

DEC18 2053EST. Shares of C.H. Robinson Worldwide (CHRW), the logistics firm and NAZDAQ-100 component, have today pierced through the resistance trendline of a 2-year price channel. The break occurred on somewhat higher volume than average (1.4M shares vs. a 3-month average of 1.2M). In the screenshot below, the channel is shown in dashed yellow, and it stretches back to October 2010. C.H. Robinson also reached and closed at a 6-month high.

CHRW. Sept 2010 to present. Daily candles.
Zooming into the hourly candles chart, CHRW appears to present two potential buy points. One would be at fresh highs (just above $63.85), especially if reached within a bullish overall market environment. Another would be on a retracement to a 2-month trendline, shown below in dashed grey, which would coincide with a price of around $62.85 or just below. A sound stop-loss point might be underneath the 5-month price channel, shown below in dashed red.

CHRW. July 16, 2012 to present. Hourly candles.