Conclusion, Investment Implications, Strategy

CSX Corporation (CSX) has recently resumed its March advance while also confirming a major bullish trend change, targeting an additional 12% rise to $82.50 per share.   This is an Asbury Momentum idea.

Analysis and Rationale

CSX Corporation (CSX), together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services; and transportation of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. It transports chemicals, automotive, agricultural and food products, minerals, fertilizers, forest products, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants, as well as exports coal to deep-water port facilities. The company operates approximately 20,000 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as owns and leases approximately 3,561 locomotives. CSX Corporation was incorporated in 1978 and is headquartered in Jacksonville, Florida.

Chart 1 below plots CSX daily since January, highlighting in green the Aug 7th apparent resumption of its March advance following 2 months of sideways investor indecision.  A sustained rise above the upper boundary of the indecision area, currently at $72.39, would confirm this and target an additional 12% rise to $82.50 per share.

Chart 1

Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $71.22 area, a long entry price of $73.96 would provide a 1:3.1 risk/reward ratio (risking $1.00 to make $3.10) with an initial risk of 3.7%.

Table 1

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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.