Norfolk Southern (NSC) was raised to a "sector perform" rating by a sell-side firm Tuesday with a $237 price target . The share price of the railroad has jumped on strong volume in recent days -- the kind of price action that chart watchers like -- so let's check further.
In the bar chart of NSC, below, we can see that the shares have made a small bottom pattern in October and have rallied strongly to close above the 50-day moving average line. The trading volume has been strong, as we noted above.
The On-Balance-Volume (OBV) line has jumped upwards. The Moving Average Convergence Divergence (MACD) oscillator has been improving in October and is ready to cross above the zero line for an outright buy signal.