Playing Hub Group

Published on Wednesday, 08 September 2010 08:36 Written by Christian Paolinetti

New York, September 8th (TradersHuddle.com) - Shares of Hub Group, Inc. (NASDAQ:HUBG) closed the trading session at $28.78 near its 50 day and 200 day moving averages currently set at $30.21 and $28.97 respectively. Hub Group's price action is below these important levels, which makes the stock difficult to buy, as there will certainly be resistance as it approaches these important moving averages.

Hub Group, Inc. (NASDAQ:HUBG) is a full-service transportation provider, offering intermodal, truck brokerage, and logistics services. The company contracts with railroads to provide transportation for the long-haul portion of the shipment, and with local trucking companies for pickup and delivery. Its truck brokerage operations provide customers with specialized programs, including the Dedicated Trucking program. The company offers various transportation management services and technology solutions, including shipment optimization, load consolidation, mode selection and carrier management.

Latest price action range, defined by a peaks and troughs algorithm placed calculated support at $25.47 and calculated resistance at $27.06. These levels should be watched by traders, as they provide insight into the latest price dynamics in Hub Group shares.

Traders should evaluate their options if they want to establish a position on Hub Group given the heavy resistance expected near the 50 and 200 day moving averages. A trade might be evident as the stock manages to break these moving averages, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.