YRC Worldwide Inc. (Nasdaq: YRCW) is surging ahead to a high of $.8385, up almost 28% after months of selling. Could this be the sign everyone has been waiting for? Is there an incredible reversal in the making? Currently trading around $.80, that is 84% off its six-month high of $5.28.

YRCW has had a tough road to travel this year and has been struggling to make a profit; last year the trucking company posted a net loss of $322,234t. Rising gas prices paired with a lag in shipments has put a strain on the already struggling YRCW. However, this is not an insignificant company; Capital IQ estimates that YRCW has about $3.28 per share in cash.

There is great technical potential here too if nothing else…

The chart shows …

• YRCW is currently rallying up almost 24% on the day and has broken through resistance at $.74. Its next challenging resistance level is at $.85 as it has tested today.
• The RSI is pointed up directly into the buy zone at about 55. This could be a sign for a nice reversal.
• The Stochastic Oscillator is very strong at the moment meaning that the speed and change in price movement is solid.

The Bottom Line

YRCW has been struggling financially and there has even been talks of a possible delist from the Nasdaq, but this is a real company with a lot of potential still. With the price movement and the resistance break, there is a real opportunity to get in early and hold this one for a while. Of course you’ll want to use a stop loss and the recent resistance break at $.74 is as good as any.

Don’t forget to sign up for my free email alerts! You could have made a possible 23.8% on my SHMX alert Yesterday and 26.5% on JCOF on Monday!

Good Luck,

Ian Decker

Disclosure: No Positions

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