Transports Could Be Set For Short Term Rebound
Many of the leading transportation stocks have sold off recently. The railroad stocks have been some of the sharpest decliners in the transport sector. Many of these leading stocks are now trading around short term daily chart support levels. Stocks such as Union Pacific Corp (NYSE:UNP), CSX Corp (NYSE:CSX) and Norfolk Southern Corp (NYSE:NSC) are all trading in positive territory this morning. It is important to note that all of the leading railroad stocks are now trading below the daily chart 50, and 200 moving averages. This chart formation puts these stocks in a weak technical position at this time, therefore, the bounces from the current support levels could be short lived.
Some other leading transportation stocks that are also trading higher this morning include FedEx Corp (NYSE:FDX), United Continental Holdings Corp (NYSE:UAL), and United Parcel Service Inc (NYSE:UPS). Please remember that oil prices will have a major effect on all of the transportation stocks.