Is Con-way Topped Out?
January 30, 2012 4:56 PM
Shares of Con-way (NYSE: CNW) are currently trading lower on the session by 2.01%, at $31.75. Though shares have been battling higher throughout much of the session, they stopped short of breakeven and have since drifted back toward the intra-day low.
Given the fact that shares hit a 3-month high Friday on high volume, this price action might suggest that buying interest has peaked for the time being. A close be low $31.06 (Friday's low) would confirm that shares have entered a retracement period.
The logical target price to the downside would be the 50-day moving average, which is near $29.75. This level also coincides with the $30.00-30.33 support/resistance level shares broke through on January 19th.
Options action has been favoring the put side for the past few days. On Friday, as shares moved higher, put volume was outnumbering call vole by 2-to-1; today, put volume is outnumbering call volume by nearly 9-to-1.
Con-way Inc. provides transportation, logistics and supply-chain management services for a wide range of manufacturing, industrial and retail customers. Con-way's business units operate in regional and transcontinental less-than-truckload and full-truckload freight transportation, contract logistics and supply-chain management, multimodal freight brokerage, and trailer manufacturing.
