Knight-Swift $KNX Getting Ahead Of Itself on Freight-Hype. SellKnight-Swift, $KNX, the largest trucking company in the US, rallied yesterday after the earnings release of competitor J. B. Hunt $JBHT. J. B. Hunt's earnings yesterday were mostly inline, but these better-than-feared numbers eased the idea of a major transport downturn. Here's the daily chart for J. B. Hunt $JBHT.
So today, the day after that nice rally, Knight-Swift cuts its outlook pretty drastically. The cut both EPS for Q2 and Q3 down 10% of what was expected. They cite "oversupply of capacity" in the freight market which "resulted in greater than expected downward pressure on revenue per loaded mile", which is a lot of words to say that competition is eating their lunch.
In response, the stock gapped down today, but only closed down 2%. I think it's reasonable to speculate that the buyers, which were bullish on $KNX because of $JBHT's positive earnings, will now have to sell, and send the stock price back to the bottom of the range.
A sensible thesis is that if the stock can crack $34 to the downside, we may see $27-$30 in the next days after.
You can read the full article here: www.behindthebid.com
KNX trade ideas
Knight-Swift - $KNX - Swing-Trade | Dip-buyKnight-Swift ($KNX) posted an ER beat and Revenue miss on 4-25-18. I'll be entering into some 6/15 calls with a price target of $41.75 where I'll let those go. Hoping for a fun swing trade on this dip. It's currently trading below the 255-day linear regression 2x standard deviation line.
KNX breakout ahead? Keep watching!As we can clearly see, Price is forming higher lows, and lower highs.
In the past ( look in the H4 chart) you can see the same patterns. Sometimes price dropped a little under the support, and then rocketed away.
So my prediction is, around mid/end next week (9.-11. Aug) this stock should take off.
Check back!
Good trades, better profits!
KNX- short from 28 to 25KNX falling down from its oscillating resistance, also looks like break of a small upward wedge. We can see divergence with money-flow, and money-flow going down sharply. We think it will decline from here.
On the fundamental side Transportation sector is on the weak side & recent big Insider selling makes it perfect for short.
Break of 28 will be a good short entry & our first target is 25
You can check our detailed analysis on PAG in the trading room/ Executive summery link here-
www.screencast.com
Time Span: 35"
Trade Status:
Knight Transportation Forms Giant Ascending TriangleKnight Transportation has formed a giant Ascending Triangle (purple) pattern.
The catalyst that can drive this stock higher is that an improving U.S. consumer (as evidenced by earnings beats last week from Amazon, Dunkin Donuts, Domino's Pizza, etc) and improving U.S. economy in the 2nd half of 2015 will push up demand for trucking transportation services.
The forward P/E of 18.5 suggests the company is fairly priced in relation to its earnings. Knight Transportation stock trades with a hot PEG ratio of 1.26 which suggests growth can be purchased at a premium right now.
What I REALLY like about this stock though is that the EPS forecast was just raised.
Source: www.guerillastocktrading.com
Bearish candlesticks at triple top & OBV, DMI+ divergenceAn appropriate short targeting the 0.382 fib which is also close to the 50 day Simple Moving Average (SMA).
Candlestick pattern is also bearish which has occurred at a triple top.
Furthermore the OBV has continued to fall despite the push upwards indicating a lack of sincere accumulation.
A stop above the triple top is appropriate.