CSX broke out of a tight range. Where is it headed next?
* Great earnings
* Very strong up trend
* High 3-month relative strength in the Industrial sector
* Built an 8 month base between $29.71 and $34.26
* After breaking out it started to consolidate in a tight range creating a base on base pattern
* Breaking out of the range with higher than average volume
Trade Idea:
* Now's a great time to enter as the price is very close to the broken level
Caution:
* A daily close below $36.25 would put the price back inside the range and expose $35.14 as support
* Consider exiting the trade early if the price make 4 consecutive lower lows on a daily basis.
* Alternatively, a daily close below $35.14 would negate the idea
* Very strong up trend
* High 3-month relative strength in the Industrial sector
* Built an 8 month base between $29.71 and $34.26
* After breaking out it started to consolidate in a tight range creating a base on base pattern
* Breaking out of the range with higher than average volume
Trade Idea:
* Now's a great time to enter as the price is very close to the broken level
Caution:
* A daily close below $36.25 would put the price back inside the range and expose $35.14 as support
* Consider exiting the trade early if the price make 4 consecutive lower lows on a daily basis.
* Alternatively, a daily close below $35.14 would negate the idea