NEW BULLISH Plays
CSX Corp. - CSX - close: 50.71 change: -1.15 stop: 48.90
Why We Like It:
Railroad stocks have shown a lot of strength in January. Most of the group broke through significant resistance late last week. CSX rallied to new 52-week highs on Friday. This two day pull back is a good opportunity to hop on board. Broken resistance near $50.00 is holding up as support. I am suggesting bullish positions now. We'll use a stop loss at $48.90 but more conservative traders might be able to get away with a stop loss closer to $50.00.
This is going to be a very short-term play. Earnings are coming up on January 19th. While I am tempted to hold over the report we will exit ahead of the announcement. There are just too many unknown variables that can turn an earnings report into a painful lesson in risk management. Our first target is $53.95.
Entry on January 12 at $50.71
Change since picked: + 0.00
Earnings Date 01/19/10 (confirmed)
Average Daily Volume: 2.6 million
Listed on January 12, 2009