Good technical signals and a possible breakout for CSX CORP.

CSX CORP (NASDAQ:CSX) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and 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.

Overall CSX gets a technical rating of 7 out of 10. CSX has been a medium performer in the overall market. Some doubts are observed in the medium time frame, but recent action was very positive.

• 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?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:CSX currently has a 8 as setup rating:

Besides having an excellent technical rating, CSX also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. 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. Another positive sign is the recent Pocket Pivot signal.

How can NASDAQ:CSX be traded?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this 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.