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.

Taking everything into account, CSX scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, CSX is only an average performer.

• The long and short term trends are both positive. This is looking good!
• CSX is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• When compared to the yearly performance of all other stocks, CSX outperforms 64% of them, which is more or less in line with the market.
• CSX is an average performer in the Road & Rail industry, it outperforms 52% of 46 stocks in the same industry.
• In the last month CSX has a been trading in a tight range between 34.94 and 36.57.

How do we evaluate the setup for NASDAQ:CSX?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:CSX scores a 9 out of 10:

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 36.26. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 35.73, a stop order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NASDAQ:CSX

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Of course, there are many ways to trade or not trade NASDAQ:CSX and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout analyzer.