CSX CSX-Q rallied from US$15.60 in March 2020 to US$38.63 in March 2022 (A-B) above the rising 40-week Moving Average (40wMA). After a one-half retracement in October (C), the stock settled in a horizontal trading range mostly between US$28 and US$34 for about one year (dashed lines). The rise above the top of this range signaled a breakout and the start of a new uptrend toward higher targets (D). CSX is currently in the midst of a minor correction toward the 40wMA to provide a good entry level. There is good support near US$33-34; only a sustained decline below this level would cancel the current upside potential.
Point & Figure measurements provide targets of US$43 and US$47. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com