CSX (Long)...

CSX reported earnings last week and had a very significant breakout above multi-month resistance as a result. You can see how the stock was unable to clear $36 throughout June and July. Volume was not as large as I would have liked, but I believe last week was a very significant breakout for CSX, as this is also the first time in many months CSX has sustained itself above the 200-day EMA for the first time in many months. Throughout CSX's downtrend last year, it couldn't get above that level. I am looking to buy CSX in stages. I would look to start a position on a pullback towards $36 (the solid purple line), as that was previous resistance, and so often once a resistance level is broken, it becomes support because the buyers who missed the first move step in (we see this same dynamic on the downside, too). I would look to then add more to CSX on either a break above the new highs around $38 or, more preferably, a pullback to retest support (the dashed purple line). If that support line is still intact, then the uptrend is still intact. The buying is strong in this stock judging by the fact that price is going up and the on-balance volume is moving higher.



Position: none