Courtesy of Chris Kimble.
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The Dow Jones Transportation index has remained inside of rising channel (A) over the past 20-years.
The decline of late took it down to test this channel as support back in August. At the same time it was testing 20-year support, it was testing 5-year rising channel support at the same time.
So far, support has held.
Now the Transports are facing a falling resistance line that has been in play for the past 6-months
A breakout above resistance would be a positive price development and would also be a good sign for the broad markets.
Keep a close eye on Transports going forward, this looks to be an important test for this index and the broad markets!
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