ArcBest Stock's Arc Probably Wasn't Its Best

ArcBest (NASDAQ:ARCB) is currently in Phase 9 of its 18-phase Adhishthana cycle on the weekly charts, navigating bearish phases across both weekly and monthly timeframes. Here's how the stock's structure looks under the lens of the Adhishthana Principles, and why investors should stay cautious.

ArcBest Cakra Formation & Arc Breakdown 

ArcBest has maintained a fairly strong alignment with the Adhishthana Principles, moving almost textbook-like through its early phases.

According to the framework, stocks typically form a Cakra structure between Phases 4-8, a channel-like setup with an arc that usually carries bullish implications. A clean breakout in Phase 9 kicks off the Himalayan Formation, marking a powerful bullish move.

ArcBest began forming its Cakra in April 2022, trading within its "arc" until Phase 6, when its outlook changed. Instead of respecting its arc, the stock broke the Cakra on the flip side, triggering what the Principles call the Move of Pralaya, a bearish breakdown that often leads to extended underperformance.

As I stated in Adhishthana: The Principles That Govern Wealth, Time & Tragedy:

"When the underlying breaks the Cakra on the flip side, consolidation typically extends into the Guna Triads. The move that follows is highly significant, and selling pressure can be extremely strong. This is called the Move of Pralaya."

True to form, ArcBest tumbled nearly 55%, and based on its Adhishthana structure, this weakness could persist until the stock enters its Guna Triads (Phases 14, 15, and 16), which determine the potential for Nirvana (the peak of the cycle in Phase 18). Those phases, however, don't begin until 2029, suggesting the stock may remain sluggish for quite some time.

The Descent Leg in Play: Monthly Chart Outlook

On the monthly chart, ArcBest's structure tells the other half of the story, and explains why the stock's strong bullish run in early 2024 reversed so sharply.

The stock entered its Phase 4 back in 2005, carefully respecting its Cakra throughout Phases 4–8 before finally breaking out in Phase 9. What followed was a textbook Phase 9 rally: the stock surged nearly 380%.

As outlined in the Principles, the Himalayan formation consists of three legs; an ascent (Phase 9), a peak (Phase 10), and a descent (Phase 11). ArcBest followed this pattern with great precision. After rallying in Phase 9, the stock made a peak near $153.60 in its Phase 10 before beginning its descent leg, which explains the current weakness.

Investor Outlook

ArcBest's structure across both timeframes: a Cakra breakdown on the weekly and a descent phase on the monthly, clearly reinforces the bearish setup under the Adhishthana framework.

While short-term rallies may occur, they are unlikely to sustain for long. With the Move of Pralaya active and the stock deep in its descent leg, the overall trend remains bearish. Investors might want to stay cautious for now, as ArcBest seems to have more sluggishness before its next major cycle reset. 

While ArcBest respected its arc on the monthly chart, its weekly arc probably wasn't the best.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.