C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW)

C.H. Robinson Worldwide, Inc., a third party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide. It offers transportation and logistics services, such as truckload comprising time-definite and expedited truck transportation services; less than truckload services; intermodal transportation, which is shipment service of freight in trailers or containers by combination of truck and rail; and non-vessel ocean common carrier or freight forwarding services, as well as organizes air shipments and provides door-to-door services.

Take a look at the 1-year chart of C.H. (NASDAQ: CHRW) below with my added notations:

1-year chart of C.H. (NASDAQ: CHRW)

Over the past 2 months, CHRW has hit the $70 mark as support and resistance on a couple different occasions each. In addition, the stock has been climbing a trend line of support (green) since the end of July. Together, these two lines have formed an ascending triangle on CHRW. Eventually, the stock will have to break either the $70 resistance or the triangle support.

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The Tale of the Tape: CHRW is winding up between two key levels. A long trade could be made at the triangle support or on a break above $70. A break below the trendline would be an opportunity to enter a short trade.

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

Follow me on Twitter: @cmtstockcoach