Transportation-related stocks tend to be economically sensitive. So it was no surprise to see them fall sharply last March as the COVID-19 coronavirus gripped our news and nation.
But since bottoming last year, the Dow Jones Transportation Average and Baltic Dry Shipping Index have moved sharply higher. And this may be sending a bullish message about these stocks (and the global economy).
As you can see in today’s chart 2-pack, both indices are breaking out above their respective long-term “monthly” trend-lines at each point (1).
In the case of the transports, it’s a breakout above overhead rising resistance (indicating a very strong move as long as it holds). In the case of the shipping index, it is breaking out above a confluence of lateral resistance and its falling overhead trend-line (this will signal a change in trend as long as it holds).
In any event, the price action continues to reflect strength in the global economy! Bulls want these breakouts hold. Stay tuned!
![dow jones transportation average breakout new highs buy signal chart news may 4](https://www.seeitmarket.com/wp-content/uploads/2021/05/dow-jones-transportation-average-breakout-new-highs-buy-signal-chart-news-may-4-1024x471.jpg)
Note that KimbleCharting is offering a 2 week Free trial to See It Market readers. Just send me an email to services@kimblechartingsolutions.com for details to get set up.
Twitter: @KimbleCharting
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.