CSX is one of the biggest rail companies in the world carrying some of the biggest cargoes around, including crude oil, coal, lumber, pipes, infrastructure parts, and retail goods. They have some strong competition from rivals Union Pacific, Norfolk Southern and Kansas City Southern, not to mention a couple of big railway companies in Canada.
But CSX, not their competitors, has been on my radar for a while. I recently mentioned it was the ONLY good buy during an Off the Charts segment on Jim Cramer’s Mad Money show. The entire transport group has been a serial under performer. As time goes by, price action tends to improve, and we are in that very situation right now with CSX. Further, option flow towards the name has been incredibly strong and points to even higher prices on the horizon.
The CSX chart is showing a nice breakout from a downtrend channel on solid turnover. The MACD shows a crossover and a buy signal. What has my attention, though, is the enormous call volume, Monday notwithstanding. On Monday, April 20, over 20 times more calls than puts were purchased, a skew that is extremely impressive.
Given the latest breakout and the current buying interest, we bought some of June 35 calls on April 20 in the Explosive Options service. Take a look at the CSX chart and the video below for more details on this stock.
CSX Chart Analysis
Take a deeper dive into the chart action and learn how to read the technicals as I walk you through the CSX stock (NYSE: CSX) and my analysis as mark up our chart of the week.
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