Trinity Industries Breaks Out
Trinity Industries (TRN) shares are surging today in very heavy trade. The multi-industry company, with its strong link to the railroad sector, is one of the top percentage gainers on the NYSE. Last night's second-quarter report, which included an improved profit outlook for 2012, sparked a powerful gap-higher open that pushed shares to fresh July highs. TRN has backed off a bit from its early gains but is still up more than 17% and appears to be gaining traction above its June highs.Trinity Industries (TRN) Source: TradeStation View Chart » View in New Window »
Today's breakout-type action has significant upside potential. The stock is leaving behind a very solid 10-week base that has been under construction since mid-May. Layers of underlying support are in place from the $24.00 to $26.00 area. With the stock now more than 20% above the July 12 lows, the day Stifel Nicolaus initiated a Buy rating, a bit of back-and-fill action is likely in the near term. A light volume drift back down to the $25.00 area would work off a bit of the earning's inspired ramp....50 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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