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Transports could go 'parabolic' if this happens

Few sectors have been as great as transportation this year. The transports have had nothing short of a fantastic 2014. Year-to-date, the Dow Jones Transportation Average is up 22.6 percent, trouncing the S&P 500's 10 percent returns.

Of course, fueling the transports has been cheaper energy prices. Over the past four months, crude oil prices have plunged 25 percent.

So can the transports' incredible rally continue?

"As that happens, transport stocks should actually continue to benefit," said Gina Sanchez, founder of Chantico Global. "They're putting in solid operating margins and better pricing strategies." And according to Sanchez, a CNBC contributor, if crude oil remains near these levels throughout next year, cheaper crude and a growing economy will particular help railroad stocks.

"That there is more to run in transports," she added. "They have run a long way but if this trend continues … that's actually very, very bullish."

The technicals for the transports are also bullish, albeit with a caveat, according to Todd Gordon, founder of TradingAnalysis.com.

Looking at a chart of the ETF tracking the transport sector (trading under the ticker symbol IYT), Gordon sees a trend channel in place since 2011. And that's what gives Gordon reason to be cautious. The ITY is trading on the upper bound of the channel.

"We're up against resistance," he said. "I'm respectful of the trend but I'm very careful not to add to positions or get into new ones at this point."

However, if oil goes down to $65 per barrel, the IYT may be able to break out above the channel. "We could go parabolic," Gordon said.

On such a break he would buy railroads and airline stocks like JetBlue and United Continental. Until then, though, he's holding off on buying.

"I'm definitely respectful of the trend but we need to see that push to add at this point."

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