CSX finds buyers again around 55.83
CSX Corporation (CSX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CSX finished Thursday at 58.57 gaining $2.04 (3.61%) on low volume, notably underperforming the Nasdaq 100 (5.72%). Trading up to $1.29 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 18th, CSX gained 7.93% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CSX as at Mar 26, 2020):
Thursday's trading range has been $3.30 (5.78%), that's below the last trading month's daily average range of $4.37. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CSX.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 54.93 (S1). Unable to break through the key technical resistance level at 58.79 (R1), the stock closed below it after spiking up to 59.13 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 55.01 in the previous session, the market found buyers again around the same price level today at 55.83.
Although CSX is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 60.57 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for CSX. Out of 309 times, CSX closed higher 53.72% 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 58.90% with an average market move of 0.29%.