Tuesday, 1 August 2017

CSX - short term weak

Whilst the main market saw yet another day of moderate chop, there was notable weakness in CSX, which settled lower for a fourth consecutive day,  -1.5% at $48.60. Near term outlook offers the $47s. A test of the 200dma - soon in the $45s, would sync up with sp'2435, before the mid term bullish trend resumes.

CSX daily

CSX monthly, linear scale


Suffice to add, recent earnings were fine. CSX is merely being dragged lower by the broader transportation sector, which has been a laggard across this year.

Seen on the bigger chart, the mid/long term trend is bullish. Things only turn mid term bearish if <$45, and then the target would be $35, back to levels seen in 2015/14.

Short term bearish, but mid term bullish. First soft upside target is the 50dma - currently in the $52s, and then the July 13th historic high of $55.48.