Tech View: Transportation (OSG)
January 12, 2010 1:19 PM
According to Katie Stockton, analyst at MKM Partners, technical analysis of the transportation sector reveals that the sector, particularly shippers will outperform the broad market indices. The positive momentum exhibited by the sector has allowed it to reach new highs with the broader market.
The iShares Dow Jones Transport. Avg. (ETF)
(NYSE: IYT) exceeded the 61.8% Fibonacci retracement of their May 2008-March 2009 downtrend based on the weekly TMAP model which consists of 20, 35 and 50 period moving averages of price.
Overseas Shipholding Group (NYSE: OSG) confirmed a breakout above resistance at January and October 2009 highs. Initial support is seen at $45 with increasing potential for volatility within the framework of the long term uptrend.
