Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Currently, Old Dominion Freight Line stock matches one trading strategy:
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at ATHs is that shares price doesn't struggle with upper resistances, and usually it scales rapidly. However, there's the risk of a bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is always important. Price is now at 2.23% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $190.13. The stop loss would be set at $171.12
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$190.13||$171.12||10%|
Knowing when to sell a stock is even more difficult than knowing when to buy it. As when we have to buy shares, deciding when is appropiate to sell is not a random decision, and we must use our own trading strategy. When selling, as well as buying, detailed strategies are very simple to use and are only valid for selling stocks you already own, not for shorting ODFL stock
A golden rule is that you must never hold a trade that yields greater losses than those expected by the time of purchase. The moment to sell shares should always be dictated by the stop-loss (automatic or manual)
In the current situation of Old Dominion Freight Line there is not any eligible sell setup, so Old Dominion Freight Line stock holders with operations in green can keep their positions
Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal
In the last month, 4 ratings were published for Old Dominion Freight Line
|Jul 31st, 2020|
|Credit Suisse Group||Neutral|
|Jul 31st, 2020|
|Aug 3rd, 2020|
|Aug 5th, 2020|
Old Dominion Freight Line stock started an uptrend in mid-March, and gained a gorgeous 75.93%. During this uptrend, the price offered some buy points on the breakouts. Latest pullback was in mid-June, when price bounced at $153.57. Old Dominion Freight Line broke out above $171.62 (its last top) in early July. That breakout was a good entry point
A favorite tool of many technical analysts are the moving averages, that easily show market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days
Technical analysts use supports and resistances as a way to spot price points in the stock price action that tend to behave as barriers, preventing the price of a stock to move up or down. Supports are levels where the price may stop as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue falling until meeting another support level. In contrast, resistances are where the price may find resistance as it rises. In the same way, the price is more likely to "bounce off" at this level, and if it finally breaches this level, it will rise easily until it hits the next resistance
Price is at all-time highs and there are not upper resistance levels.
The current support levels are:
This is an indicator that was introduced in the 1980s by John Bollinger. It is composed of 3 bands that are outlined superimposed on the price evolution chart:
The price is trading near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks
The Relative Strength Index is an oscillator-type indicator that track price movements to reveal when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders
The RSI dropped below the overbought level of 70 on July 23 after just crossing to the overbough zone for a single day (weak signal). The RSI value on Friday was 61.99. Old Dominion Freight Line price scarcely changed a 0.14% since RSI lost the overbought zone
Old Dominion Freight Line, Inc. (ODFL) published quarterly earnings of $1.25 per share, uplifting the Market consensus estimate of $1.08 per share. This Q2 report means an earnings surprise of 15.74%. On the contrary, the company said turnover for this quarter was $896.2 million in line with analysts' forecasts.
Compared to the same quarter one year ago, EPS was $1.44, so current EPS means a reduction of -13.19%. Turnover dropped a -15.51% on an annualized basis in the second-quarter, from $1.1B to $896.2M last quarter.
ODFL is hosting the earnings call next October. Forecasted earnings of %s per-share for this quarter is $1.41. Financial reporting day has an additional risk for investors as the results posted can gap up or down the price with very low volume and not respecting your buy/stop-loss orders. You can probably find more information about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.odfl.com.