CSX Corp. (CSX) was raised to a fundamental buy recommendation at Citigroup here on Monday. The analyst gave the railroad a $37 price target. Let's see how the charts look and what Point and Figure price targets there may be.




CSX Corp. (CSX) was raised to a fundamental buy recommendation at Citigroup here on Monday. The analyst gave the railroad a $37 price target. Let's see how the charts look and what Point and Figure price targets there may be.
Clues were out there, but the news certainly took most by surprise.
I favor the former, for technical and fundamental reasons.
While support levels have been building and the number of new lows is declining, there is no sustained momentum outside a few big-cap tech stocks.
An orderly move lower in the near term would be a trading prerequisite, but a sharp drop probably would scare me off.
Let's take a look at the indicators -- and how they haven't changed -- as well as the overbought reading and why Wall Street has a supply chain problem of sorts.
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