This Transportation Stock Is Trucking Higher

It's always a good signal to see transportation stocks ($TRAN) perform well and today the TRAN broke out of a bullish cup with handle pattern.

That should bode well for most transportation stocks and Old Dominion Freight Line (ODFL) was no exception today. After reporting EPS ($2.92 vs. $2.68) that easily topped forecasts, ODFL soared more than 10%, leaving a series of price highs in the 320s in its dust:

Enter Old Dominion Freight Line, Inc. (ODFL):

There's a lot to like on this chart. The trucking industry ($DJUSTK) jumped significantly and blew past resistance, closing at its highest level in a year. ODFL shows a very strong AD line and excellent relative strength. In fact, its relative strength vs. its industry shot to a new all-time high. Its relative strength vs. the S&P 500 also hit a new all-time high. And the trucking industry vs. the S&P 500 hit an all-time high. Clearly, ODFL is a leading stock in a leading industry group, which is exactly the type of stock that I like to own.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.