The Canadian Technician

Mullen Trucking and Transforce Release The Air Brakes

Greg Schnell

Greg Schnell

Chief Technical Analyst, Osprey Strategic

Mullen had a great week last week. Check out the chart.

MTL.TO 20130805

That is very bullish enthusiasm. The volume soared to almost 3 month highs as the stock broke above a solid resistance range of $23.00 - $23.50. 

The target for the measurement of the double bottom would be in the $27.35 range. Take the difference between the lows (19.43 and 19.67, we'll call it 19.50) and the centre of the double bottom at 23.42. This calculates to $23.42 - $19.50 = $3.92. Add $3.92 to the centre peak level of $23.42 = $27.34.

Pretty strong even from here.

Here is another major Canadian trucking firm, Transforce.


TFI.TO 20130805

This one also had a nice move above a 4 month resistance level of $21. The MACD made a nice move to cross above the signal line and create a positive histogram. The volume was also slightly above average.

Investors in both cases were willing to pay more for these stocks than any time in the last 4 months. That's bullish behaviour! Look for this to move higher. If these breakouts fail, that would be more telling about where the market is going next, but this is a bullish move in a key sector that says things are getting better.

Good trading,

Greg Schnell, CMT.

Greg Schnell
About the author: , CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More