Profit From The Railroad Stocks Fall, This Is How
By Wed, Jul 17, 2019
Today, most of the leading railroad stocks are declining sharply lower after a very weak earnings report from CSX Corp (NYSE:CSX). The company said it expects revenue to fall by as much as 2.0% in 2019. Prior to this report, the company was forecasting an increase of 1.0 to 2.0%.
So where does the stock go from here and how can you play it? Let’s look to the charts to tell us!
Currently, CSX stock is declining lower by $8.52 (-10.50) to $71.05 a share. CSX stock is now trading below it’s 200-day moving average, this price action puts the stock in a weak technical position. Considering that, those wanting to take a position in the stock for a bounce higher must first wait for further selling in the share price before buying. This selling should occur in the coming days to weeks ahead. Smart traders and investors need to express patience at all times when looking to buy any stock. There is an old saying on Wall Street, “there is always another trade around the corner.” What this tells you is that there is no need to buy anything unless the price is right, and now is not the time to buy CSX. If you happen to miss a stock move that you may have expected due to waiting for the best price with supporting factors, that is ok! It is better to wait for the best setups, then buy based upon weak analysis. The way to last and profit for a long time in this industry, is to keep probability on your side and the charts allow you to do that. So always take heed to what they tell you.
The next major support level for CSX stock will be around the $65.00 area. This level is where the 100-week moving average is currently and should be defended when tested. Other railroad stocks that are falling in sympathy to CSX Corp include Norfolk Southern Corp (NYSE:NSC), Union Pacific Corp (NYSE:UNP) and Kansas City Southern (NYSE:KSU). Keep that $65 price point on your charts and wait for the level to be reached. At that point, consider buying the stock.
About the Author
Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He successfully managed money for a large, affluent private client group. Nick is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. After applying his knowledge to his client base and meeting his personal monetary goals, he decided it was time to begin teaching those interested in learning his trading and investing methodology. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.com and realize his dream of educating others about the truth of the markets. He now co-heads the education department at InTheMoneyStocks and enlightens thousands of members, along with providing consulting services to hedge funds and institutions. Nicholas Santiago is known for his master cycle dates and proprietary count systems. He developed these over decades of study and members of InTheMoneyStocks have enjoyed the rewards. He swing trades and day trades large caps, along with commodities, currencies and futures. If it has price, pattern and time aligning, he is making money on it.
