Kirby Corporation (NYSE: KEX)

Kirby Corporation, through its subsidiaries, provides marine transportation and diesel engine services primarily in the United States. Its Marine Transportation segment provides transportation services for the inland and coastal markets. This segment engages in transporting petrochemicals, black oil products, refined petroleum products, and agricultural chemicals by tank barges; and the coastal transportation of dry-bulk cargoes. The company’s Diesel Engine Services segment is involved in the overhaul and repair of medium-speed and high-speed diesel engines and reduction gears; sale of related parts used in marine and power generation applications; distribution and service of high-speed diesel engines and transmissions, pumps, and compression products; and manufacture of oilfield service equipment, including hydraulic fracturing equipment used in land-based pressure pumping, oilfield service, power generation, and transportation applications. Kirby Corporation serves inland and offshore barge operators; oilfield service providers; oil and gas operators and producers; compression companies; utilities; on-highway transportation companies; marine transportation entities; the United States Coast Guard and the United States Navy; and companies associated with the agricultural markets.

To analyze Kirby’s stock for potential trading opportunities, please take a look at the 1-year chart of KEX (Kirby Corporation) below with my added notations:

1-year chart of KEX (Kirby Corporation)

KEX has been trending higher nicely since June. For now, there are two key levels to watch on the stock: The $60 level (blue) was a clear resistance in October and November, broke above that level, and then it became support until May. The $55 level (red) was a brief support in May and a strong resistance in July and August. KEX is currently trading between these two levels.

The Tale of the Tape: KEX is trading between $55 and $60. You could buy KEX if it comes back down to the $55 level or breaks above $60. One could also short the stock if it breaks the expected $55 support or on a rally up to $60.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT