The Engine That Could…
Dragonfly Capital | Mar 05, 2013 01:01AM ET
Transportation stocks started the latest leg of the markets higher move. Railroads like Kansas City Southern (KSU), Union Pacific (UNP) and Canadian National Rail (CNI) have been the driving force engines. But not every railroad stock flew higher. One name was left behind at the roundhouse, but listen closely and you can hear it whispering ‘I think I can, I think I can’, as it climbs to resistance. CSX ($CSX)
CSX (CSX), has traded in a long channel between 19.50 and 23 for over a year. Afraid to peek above the top, it finally did break over that resistance Monday, and after a two month move higher off of the bottom of the channel. With some momentum behind it, it just might be ready to scale that mountain to the July 2011 peak. The Relative Strength Index (RSI) is bullish, and moving higher with a Moving Average Convergence Divergence indicator (MACD) that is consolidating. The target on the break of the channel is a move to 26.50, even above the July high. Keep an eye on this for confirmation of the break out higher, or a failure. A continued move higher Tuesday leaves a tradeable stop around the breakout level.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Original post
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