CSX Corp. (CSX) was reviewed back in the middle of May, when I wrote that, "Traders can continue to operate from the long side. Sell stop protection could be raised to a close below $58. The $75 area is our upside price target." With CSX gaping to the upside and much closer to our $75 price target a fresh look at the charts is in order.
In this updated daily bar chart of CSX, below, we can see that prices are above the rising 50-day moving average line as well as the bullish 200-day line. The daily On-Balance-Volume (OBV) line has been trending higher from February and should make a new high for the move up today - signs that buyers of CSX have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator is turning up from just above the zero line for a new outright go long buy signal.
In this weekly bar chart of CSX, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line is neutral. The weekly MACD oscillator has narrowed towards a bearish crossover but this is likely to be reversed in the days ahead.
In this Point and Figure chart of CSX, below, we can see the recent upside breakout without a price gap. A bullish price target of close to $86 is being projected.
Bottom line: Traders and investors should still be long CSX from lower levels and previous recommendations. Hold longs and consider adding to positions. $75 and now $86 are our price targets. Risk a close below $61 for now.