CSX Corporation (CSX)

CSX stock forecast: buy or sell

CSX stock outlook

  • CSX closed today at $69.34 after moving up a 1.02%.
  • The stock is configuring an uptrend pattern since late March, when it bottomed at $46.64. Up to date, the uptrend made a 48.67% gain since the beginning of this rally
  • CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services, as well as transports intermodal containers and trailers.
No ad for you

Important note:
The opinions given in this article are personal and not recommendations for you to buy or sell shares. The author of this report does not have an understanding of the individual positions of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for education purposes only

CSX stock chart overview

Should I buy CSX stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is CSX stock a buy?

In the current situation of CSX there is just one buy setup eligible:

Uptrend buy setup

CSX stock continues to trend higher since in late March and has marked an amazing 48.67% gain. Price marked a local bottom in this uptrend at $65.37 on June 26, and since then it bounced up a 6.07%. Breaking out above $76.91 - it's last top - will be a good entry point if CSX resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $69.22

Buy setupBuy pointStop lossRisk
Uptrend buy setup$76.91$69.2210%
No ad for you

Should I sell CSX stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies allow us to avoid rash decisions based on our personal emotions or the noise surrounding the market. When selling, as well as buying, our setups are very simple to follow and are only valid for selling stocks you already own, not for selling short CSX stock

As a golden rule, you should not hold a trading operation that shows a greater losses than those expected upon purchase. The moment to sell your stock always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell CSX stock?

Currently, CSX stock doesn't match any of our preferred sell setups, so if you hold CSX shares and your operation is in profit probably is not time to sell now

No ad for you

Analysts' recommendations to buy or sell CSX stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 2 analyst ratings were published for CSX

No ad for you

CSX ratings

Brokerage firmRating
Jun 17th, 2020
Deutsche Bank BuyStrong buy
Jun 25th, 2020
Citigroup Neutral

Technical analysis

Since in late March, CSX has been drawing an uptrend that by now marked an amazing 48.67%. The price shows higher highs and higher troughs, and along the way gave some buy points for those who wanted to enter. Latest pullback was on June 26, when price bounced at $65.37. Like in all uptrends, price needs to rest and now price is consolidating the gains in a range between $76.91 and $65.37

SMAs overview

Moving averages are simple tools for investors to gauge market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Market investors use supports and resistances as a way to identify price points in the stock price action that may behave as barriers, preventing the price of shares to move up or down. A support level is a level where the price may stop as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down this level, it is likely to continue falling until approaching another support level. In contrast, resistances are where the price may find a curb as it rises. In the same way, the price is more likely to "bounce off" at this level, and if it finally crosses this level, the price will rise easily until it meets the next resistance

The current resistances are:

  • R1: $69.36 (0.03% above)
  • R2: $70.99 (2.38% above)
  • R3: $71.13 (2.58% above)
  • The current support levels are:

  • S1: $69.04 (-0.43% below)
  • S2: $67.63 (-2.47% below)
  • S3: $65.92 (-4.93% below)
  • Bollinger bands

    This is an indicator that was created in the 1980s by John Bollinger. Fundamentally, the Bollinger Bands are bands that run around a moving average and vary the distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The price is moving near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to map the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI fluctuates between 0% and 100%. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    The Relative Strength Indicator has been between the levels of 70 and 30 for several weeks, and therefore, without this indicator really being of any help to us in making any decisions.

    No ad for you

    Earnings and financials

    In mid-April, CSX had the quarterly earnings event and released the first-quarter report. CSX surpassed analysts estimates and reported a per-share earnings of %s of $1.00, that is a 6.38% surprise compared to the previous predictions of $0.94. Reported revenues were $2.9 billion compared to estimates of $2.9 billion.

    Same quarter last year, reported EPS was $1.02, so recently posted EPS means a reduction of -1.96%. Turnover barely changed on an annualized basis in the 1st-quarter, from $3.0B to $2.9B last quarter.

    CSX is releasing earnings report on Wednesday next week. Expected per-share earnings of %s for this quarter is $0.65. Earnings reporting day has an additional risk for stock investors as the information disclosed can soar and sink the price with very low liquidity and not honouring your buy or stop-loss orders. Check company's website to confirm time and details on the earnings call and the earnings report.

    No ad for you