Greenbrier Companies: Hidden Transportation Play

Published 10/16/2013, 02:46 AM

A few weeks ago Greenbrier Companies Inc, (GBX), was on watch in the premium service but it never triggered. After a quick dump with the market and a ride higher along the 20 day Simple Moving Average (SMA), it is right back at resistance and ready to trigger a long position.

The chart below shows that it has some strong potential as well. It has been building a bearish Butterfly Harmonic, with a Potential Reversal Zone (PRZ) at 35.75. This is where the Harmonic pattern would suggest it may top out before reversing lower. As I said, it has some resistance to get through at 26.20 first and then resistance higher at 30.36 along the way from the March 2011 high.
Chart 1
It also is printing a Tweezers Top, so today may not be the day. But the SMA are all rising now and the Bollinger® bands are opening higher. It also has a bullish and rising RSI and a MACD that has turned up and crossed to positive, both supporting the upside. For the purist, it has had a series of higher highs and higher lows since November 2012 as well.

It is in an uptrend. With the good report from CSX Corporation, (CSX) Tuesday night, could this be the catalyst?

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