CSX pushes through key technical resistance level
CSX Corporation (CSX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CSX ended the week 10.53% higher at 68.53 after gaining $0.73 (1.08%) today on low volume, outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Today's close at 68.53 marks the highest recorded closing price since March 5th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 68.28, the share confirmed its breakout through the prior session high after trading up to $0.35 above it intraday.
Daily Candlestick Chart (CSX as at May 22, 2020):
Friday's trading range has been $1.20 (1.78%), that's below the last trading month's daily average range of $1.73. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CSX.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on March 30th, CSX lost -1.24% on the following trading day.
Buyers managed to take out the key technical resistance level at 68.42 (now S1), which is likely to act as support going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 69.81 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 66.92 where further sell stops could get triggered. Trading close to March's high at 73.04 we might see further upside momentum if potential buy stops at the level get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for CSX. Out of 58 times, CSX closed higher 56.90% of the time on the next trading day after the market condition occurred.