Delivery services ($DJUSAF) broke out of a bullish continuation cup with handle pattern a few weeks ago and appears poised for a further fourth quarter rally, albeit with some profit taking along the way. Bullish continuation patterns require a prior uptrend and the DJUSAF certainly had that. Check out the chart:
Personally, I love to see the handle form back to the rising 20 period EMA, which is exactly what the DJUSAF did here. Now that it's broken out, I expect to see bullish action in companies within this industry group. Two companies that recently posted strong quarterly results that beat Wall Street estimates should benefit from the technical tailwinds of the industry:
Of these two stocks, AAWW may be the better play simply because it has a much better seasonality record in the fourth quarter. Technically, they both are strong and are buyable on heavy volume breakouts.
Happy trading!
Tom
