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.
In this daily bar chart of CSX, below, I can see that prices are outlining a potential bullish base pattern. I see a left shoulder in July and a head in October followed by a right shoulder in March. Strength above the highs in December and January should be the breakout we need for the start of an upside move. Prices trade above the rising 50-day moving average line and the rising 200-day moving average line. The On-Balance-Volume (OBV) line shows a rise from October, telling me that traders have shifted from being aggressive sellers to aggressive buyers. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly Japanese candlestick chart of CSX, below, it is easier to see the base pattern mentioned above. Prices are trading above the bottoming 40-week moving average line. The weekly volume histogram looks more active the past 12 months than the prior two years. The weekly OBV line shows a higher low in March but needs to break above its early 2023 highs to really impress. The MACD oscillator is edging above the zero line for an outright buy signal.
re In this daily Point and Figure chart of CSX, below, I can see the software is projecting an upside price target in the $34 area.
In this weekly Point and Figure chart of CSX, below, I can see a price target in the $40 area.
Bottom line strategy: Traders could probe the long side of CSX at current levels and add to longs above $33.26. The $40 area is my price target for now. Risk to $30.
