CSX Corp. (CSX) is sporting a bullish set of charts and indicators. Let's check the condition of the railroad's charts and indicators to see what may be down the tracks.
In this daily bar chart of CSX, below, I can see that prices are breaking out on the upside. CSX is breaking the highs of December and has its sights set on the August zenith. Prices trade above the rising 50-day moving average line and above the declining 200-day line. The On-Balance-Volume (OBV) line is slowly improving from a March low. A rising OBV line tells me that buyers of CSX are more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of CSX, below, I can see a bullish picture now. The candles are not showing us upper shadows and not showing top reversal patterns. Prices are trading above the bottoming 40-week moving average line. The weekly OBV line shows lows in October and March. The MACD oscillator has crossed above the zero line for an outright buy signal. A strong weekly close above $34 could accelerate gains.
In this daily Point and Figure chart of CSX, below, I can see a price target in the $40 area.
In this weekly Point and Figure chart of CSX, below, I can see the same $40 price target as the daily chart above.
Bottom line strategy: Traders could go long shares of CSX at current levels. Risk to $31. The $40 area is my price target for now.
