Canadian National Railway (CNI) made a significant upside breakout this month. In the short run prices have gotten extended but the long-term picture remains very bullish. Take a look.
In this daily bar chart of CNI, below, we can see that CNI has broken out above its January and May/June highs. Prices are above the rising 50-day moving average line and the firming 200-day line. In June we can see a bullish golden cross as the 50-day line moved above the 200-day line. The daily On-Balance-Volume (OBV) line has been moving up with prices from early April which helps to confirm the advance. The Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line in April for a buy signal. This indicator is still bullish.
In this weekly bar chart of CNI, below, we can see that prices have broken above the chart resistance around $85. CNI is above the rising 40-week moving average line. The weekly OBV line is bullish and tells us that buyers of this stock have been more aggressive. The MACD oscillator is bullish on this longer time frame.
In this Point and Figure chart of CNI, below, we can see a breakout at $85.59. A price target of near $110 is being projected.
Bottom line: CNI is extended so traders should try to buy a shallow dip or pullback. Risk below $84 looking for $110 or more on the upside.