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CSX Corp. (CSX-Q, Monday’s close US$37.47) rallied from US$15.60 in March, 2020, to US$38.63 in March, 2022, (A-B) while trading above its rising 40-week moving average (40wMA). It then settled into a broad trading range, mostly between US$27 and US$39 (dashed lines). A sustained move above US$39-40 would signal a breakout from this range and the start of a new uptrend toward higher targets.
Behaviour indicators, including the rising 40wMA, confirm the bullish potential. Only a decline below US$34-35 would suggest that CSX is not yet ready to break out.
A rise above US$39-40 would signal Point & Figure targets of US$44 and US$49. A breakout above the top of the trading range (dashed lines) would support even higher targets.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com