CSX finds buyers around 75.57 for the third day in a row
CSX Corporation (CSX) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
CSX finished Tuesday at 75.89 edging higher $0.02 (0.03%), slightly underperforming the Nasdaq 100 (0.34%) ahead of today's earnings report. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CSX as at Apr 16, 2019):
CSX is set to report earnings after today's market close. For the upcoming report, analysts expect the company to have earned $0.92 per share. The company's last earnings report was released on Jan. 16, 2019, when CSX Corporation reported earnings of $1.01 per share missing market expectations by -1.0%.
Tuesday's trading range has been $0.74 (0.97%), that's far below the last trading month's daily average range of $1.09. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CSX. Prices continued to consolidate within a tight trading range between 75.54 and 76.82 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
The market found buyers again today around 75.57 for the third trading day in a row after having found demand at 75.54 in the prior session and at 75.54 two days ago. The last time this happened on March 25th, CSX gained 0.38% on the following trading day.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 76.82 where further buy stops might get triggered. With prices trading close to this year's high at 77.15, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day before Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for CSX. Out of 27 times, CSX closed higher 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.26% with an average market move of 2.01%.