Railroad operator CSX has squeezed into a tight range for almost five months. Now it may be ready for a breakout.
The first pattern jumping off the chart is the ascending triangle with resistance around $95. Prices just started to escape the top yesterday.
Also notice how the lows on January 27, March 4 and March 19 were followed by “kicker” candlestick patterns. Those snapbacks show buyers didn’t let the stock remain down for long.
Next, Bollinger Band Width has tightened during this time, creating the potential for expansion if CSX starts running.
Third, prices have recently consolidated above the 8-day exponential moving average (EMA), the 21-day EMA and the 50-day simple moving average (SMA).
Finally, MACD has just turned positive.
In addition to those technicals, CSX is a transportation stock: the type of cyclical company that can benefit as economy recovers from the pandemic.
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The first pattern jumping off the chart is the ascending triangle with resistance around $95. Prices just started to escape the top yesterday.
Also notice how the lows on January 27, March 4 and March 19 were followed by “kicker” candlestick patterns. Those snapbacks show buyers didn’t let the stock remain down for long.
Next, Bollinger Band Width has tightened during this time, creating the potential for expansion if CSX starts running.
Third, prices have recently consolidated above the 8-day exponential moving average (EMA), the 21-day EMA and the 50-day simple moving average (SMA).
Finally, MACD has just turned positive.
In addition to those technicals, CSX is a transportation stock: the type of cyclical company that can benefit as economy recovers from the pandemic.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
