CSX Has Weakened in the Past Month - Ready for a Pullback?

 | Sep 14, 2018 | 2:55 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

csx

CSX Corp. (CSX) was reviewed one month ago where I wrote that "CSX might see a short-term limited correction but it is just part of a normal bull move. The rally looks in good shape as long as support around $64 is not broken. $86 is our next upside price target."

The price of CSX touched $76 last month and has weakened slightly. A fresh look at the charts and indicators may result in a new strategy. Let's check.

(For more on CSX, see The Apple Revolution: Cramer's 'Mad Money' Recap.)

In this daily bar chart of CSX, below, we can see that prices are rolling over towards the rising 50-day moving average line. The 200-day average line is well below the market and intersects around $62.

The daily On-Balance-Volume (OBV) line shows a decline from late August and tells us that sellers of CSX have become more aggressive.

The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed to the downside last month giving us a take profits sell signal.

In this weekly bar chart of CSX, below, we can see some weakness developing.

Prices are still well above the rising 40-week moving average line but the weekly OBV line has peaked and the MACD oscillator is very close to a weekly take profits sell signal.

In this Point and Figure chart of CSX, below, we can see that prices have reached a price target and that might prompt some profit taking.

Bottom line strategy: Prices and indicators look weaker than they did a month ago. Traders should be prepared for a decline and test of support in the $68-$66 area.

Columnist Conversations

In GS I see key price support at the 224.49-226.42 area.  I also have timing for a possible low.  I ...
Tesla (TSLA) has tested our long-term bounce zone @ 283.90-258.95 a few times. These have been BUYING opportun...
We have a big winner here, let's roll it up to a higher strike   SOLD SRPT NOV 140 CALL AT 26 (in ...
We still like this name and want to give it more time. SOLD AAPL OCT 220 CALL AT 6.9 (in at 10) BOUGHT A...

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by

COLUMNIST TWEETS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.