I’m not really looking for swing trades here in the current market, but I did look at my daily time frame bull flag scan results earlier today. The best looking bull flag identified to me was for CHRW the $12.7 billion transport company. Here is the bull-flag setting up on the daily chart …
CHRW – Daily Chart
You can see the nice little bull-flag set-up on the price chart … price is just underneath the 20SMA and its signal line so if price is going to break this flag pattern, it will also return to the bullish side of the moving averages.
The Relative Strength indicator on the right-side panel shows how well CHRW has held in during all of the selling in the market over the past week or so … impressive.
The last quarterly earnings report was released on January 30th and revenue was up 16.1% which was a nice little beat … earnings also beat expectations ($1.08 vs $0.84). If the global economy is indeed accelerating as well as most pundits are saying, transports including CHRW should have the wind at their backs for the next several quarters.
CHRW – Weekly Chart
The weekly chart shows how price is still above the weekly ATR support level … the trend strength histogram is still in the extreme trend strength warning zone, and that is the only thing negative I can say about CHRW’s charts. Normally, an extended weekly chart would turn me away from getting long a stock based on a daily chart pattern, but the monthly chart is not extended so I think that any consolidation on the weekly chart could end up being shorter in duration than normal and indeed may be complete when this daily bull-flag pattern breaks to the upside.
CHRW – 195 Minute Chart
If the daily chart is going to break the bull-flag pattern higher, it will need to first break the 195-min ATR resistance level at $93.61 … I have an audio alert set there, and I will revisit this stock when/if that ATR level is taken out.
Cheers … Leaf_West