CSX finds buyers again around 79.15
CSX Corporation (CSX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CSX ended Wednesday at 79.35 losing $0.92 (-1.15%), but still outperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CSX as at Sep 16, 2020):
Wednesday's trading range has been $2.25 (2.77%), that's above the last trading month's daily average range of $1.67. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CSX.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. In spite of a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 79.25 in the previous session, the share found buyers again around the same price level today at 79.15.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 76.43. The last time this happened on September 2nd, CSX lost -2.61% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for CSX. Out of 543 times, CSX closed higher 54.33% 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 60.77% with an average market move of 0.95%.