Old Dominion Freight Line, Inc. operates as a less-than-truckload (LTL) motor carrier in the United States and North America. It provides regional, inter-regional, and national LTL services, including ground and air expedited transportation, and consumer household pickup and delivery.
Take a look at the 1-year chart of Dominion (NASDAQ: ODFL) below with added notations:
ODFL has stalled at the same $150 resistance (red) on multiple occasions over the past couple of months. The stock has recently turned higher again, and is currently sitting just under that $150 level now. A solid close above the resistance should lead to another leg higher for ODFL.
The Tale of the Tape: ODFL has a 52-week resistance at $150. The possible long position on the stock would be on a breakout above that level with a stop placed under it.
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!
Christian Tharp, CMT