Kansas City Southern (KSU) has been struggling to make upside progress. The price action has been very choppy and the indicators are very mixed. What sort of strategy will be successful now? Let's review the charts.
(For more on KSU, see The Apple Revolution: Cramer's 'Mad Money' Recap.)
In this updated daily bar chart of KSU, below, we can see a large, choppy sideways market from October to July. In late July prices finally rallied to a new 2018 high but the trading in August and September has been choppy too.
Prices are above the rising 50-day moving average line and the bullish 200-day line.
The On-Balance-Volume (OBV) line was neutral for much of the last year and only turned up in July. Recently it looks like the OBV line is rolling over.
The Moving Average Convergence Divergence (MACD) oscillator has been in a take profits mode since early August.
In this weekly bar chart of KSU, below, we can see that prices are holding above the flattening 40-week moving average line.
The weekly OBV line is choppy like the price action. The MACD oscillator is surprisingly bullish.
In this Point and Figure chart of KSU, below, we can see that prices have reached a $116 price target. A decline below $114.23 is likely to weaken this chart.
Bottom line strategy: KSU has been hard to trade and analyze and that is likely to continue. If long I would risk just below $110.