Dallas, Texas 04/21/2014 (FINANCIALSTRENDS) – CSX Corporation (NYSE:CSX) has been in a good uptrend right from the beginning of 2014 but over the past few weeks, the stock has been trading in a narrow trading range with $28.47 on the downside and $29.48 on the upside. We saw this range break in the first week of April which saw the stock fall below its 50 day moving average which is currently placed at $28.15. The stock took support at the long term support zone at $27.20 and we have seen the stock rally on the back of massive volumes on Thursday. The stock currently sits slights above its 50 day moving average and we believe that till the aforementioned support is held the stock can continue its uptrend and would only find resistance at $28.54 levels which is the trend line resistance of the above mentioned narrow range.
The momentum indicators for CSX Corporation (NYSE:CSX) are in the negative territory testament to the downtrend and the massive fall on the break of the narrow range. The indicators though negative are showing first signs of a tepid recovery but this would be confirmed only if the support is held and the stock closes above convincingly over the 50 day moving average. The relative strength index too at the current moment are showing signs of a bounce back and only a break above the 45 zone on the RSI would give us a buy signal.
On the weekly charts the stock has formed a doji which shows the indecision between the buyers and sellers and we believe only on breaking the low of the doji formation would be seeing more selling pressure going forward.
(Figure): Daily chart for CSX Corporation (NYSE:CSX)
Latest Buzz:
CSX Corporation (NYSE:CSX) beats street estimates but according to many analysts on the street the stock still looks expensive.
