Good technical signals and a possible breakout for CSX CORP.

A possible breakout setup was detected on CSX CORP (NASDAQ:CSX) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:CSX.

Technical Analysis Observations

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 8 out of 10 to CSX. Although CSX is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• In the last month CSX has a been trading in the 29.93 - 32.41 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that CSX is one of the better performing stocks in the market, outperforming 77% of all stocks. However, this overall performance is mostly based on the strong move around 10 months ago.
• CSX is an average performer in the Ground Transportation industry, it outperforms 53% of 45 stocks in the same industry.
• CSX is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so CSX is lagging the market slightly.

How do we evaluate the setup for NASDAQ:CSX?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:CSX this score is currently 8:

Besides having an excellent technical rating, CSX also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 32.4. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 31.92, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NASDAQ:CSX

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout analyzer lists more breakout setups and is updated daily.