Thursday, July 19, 2012

Werner Enterprises Inc. (NasdaqGS: WERN)

Werner Enterprises, Inc., a transportation and logistics company, engages primarily in hauling truckload shipments of general commodities in both interstate and intrastate commerce in the United States and internationally. The company operates in two segments, Truckload Transportation Services and Value Added Services. The Truckload Transportation Services segment operates regional short-haul fleet, which transports various consumer nondurable products and other commodities in truckload quantities; medium-to-long-haul van fleet that provides comparable truckload van service over irregular routes; and the expedited fleet, which offers time-sensitive truckload services. It also provides truckload services dedicated to a specific customer, including services for products requiring specialized trailers, such as flatbed or temperature-controlled trailers. This segment principally transports retail store merchandise, consumer products, grocery products, and manufactured products. The Value Added Services segment provides non-asset-based transportation and logistics services, including truck brokerage, freight management, rail transportation, and shipments management services. Werner Enterprises, Inc. was founded in 1956 and is headquartered in Omaha, Nebraska.

To review Werner's stock, please take a look at the 1-year chart of WERN (Werner Enterprises, Inc.) below with my added notations:

Over the last (7) months, WERN has been consolidating within a couple of long-term price levels. First, WERN has formed a clear support level at $23 (navy). In addition, the stock has also been forming a down trending resistance level (blue), which has now been tested (4) different times. These two levels combined have WERN stuck within a common chart pattern known as a Descending Triangle that will eventually have to break one way or another.

The Tale of the Tape: WERN is currently trading within a very large Descending Triangle. A long trade could be made on a break above the down trending resistance or a pullback to $23 support. Or, you could enter a short trade on WERN if the stock breaks below the $23 support level.

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