Norfolk Southern (NSC) has become stalled on the tracks in recent sessions as gains from earlier this month continue to be digested.
In this daily chart of NSC, above, we can see that the current rally in NSC stopped short of the late-April highs. Prices are still above the 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line is still in an uptrend and there is no bearish divergence vs. the momentum study.
In this three-year weekly chart we can see that prices are above the gradually rising 40-week moving average line. The weekly OBV line is still pointed down, telling us that sellers have been and still are more aggressive than buyers of NSC on this time frame. The weekly Moving Average Convergence Divergence (MACD) oscillator is above the zero line and bullish.
So, how do we play NSC from here? Do we want to ship now or later? We have enough bullish daily and weekly clues to favor the long side of NSC, but we also recognize that extended markets need to rest. I know you cannot make money by sitting out, but that is exactly what I would recommend right now on NSC.