Will CSX CORP breakout?

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 Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 7 out of 10 to CSX. In the last year, CSX was an average performer in the market. There are positive signs in the very recent evolution, but the medium term picture is still mixed.

• The long term trend is still neutral, but the short term trend is positive, so the stock is getting more and more appreciated by traders and investors.
• In the last month CSX has a been trading in the 28.13 - 32.52 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the performance of all stocks over the past year, CSX turns out to be only a medium performer in the overall market: it outperformed 59% of all stocks.
• CSX is part of the Road & Rail industry. There are 47 other stocks in this industry, CSX did better than 53% of them.
• CSX is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

Why is NASDAQ:CSX a setup?

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. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 32.09. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 30.95, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

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.

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.