CSX has been chugging along, consolidating its recent gains after a big pop on stellar Q1 earnings. Then the market dropped sharply last week. There was no place to hide, and even the best names like CSX got hammered. But, as we often say, a dip is a great buying opportunity. Strong stocks that are trending up rarely give traders a chance to get on board – and now is your chance. This stock looks ready to make a new assault on the highs it reached a couple of weeks ago.
Digging into the technicals, we see some bullish signals. The pullback last week was constructive, stopping right on the 50 ma. Volume rose a bit, a sign that weak hands were distributing the stock to strong hands. Money flow crossed over to a buy signal on the MACD. The next crossover will also be a buy signal; an up day that moves the stock above the resistance line will set CSX up for new highs.
CSX (NYSE: CSX) Video Chart Analysis
Take a deeper dive into the chart action on tech stock Net App NYSE:CSX and learn how to read the technicals. Get Bob Lang’s full analysis as he marks up our chart of the week.
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CSX Corporation, together with its subsidiaries, provides rail-based transportation services in the United States and Canada. The company offers rail services, as well as transports intermodal containers and trailers. It transports agricultural and food products, fertilizers, chemicals, automotive, metals and equipment, minerals, and forest products; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants. The company also exports coal to deep-water port facilities. In addition, it offers intermodal transportation services through a network of approximately 50 terminals transporting manufactured consumer goods in containers in the eastern United States; drayage services, including the pickup and delivery of intermodal shipments; and trucking dispatch services. Further, the company serves the automotive industry with distribution centers and storage locations, as well as connects non-rail served customers through transferring products from rail to trucks, which includes plastics and ethanol. Additionally, it acquires, develops, sells, leases, and manages real estate properties