Thursday, February 5, 2015

Canadian National Railway (NYSE: CNI)

Canadian National Railway Company, together with its subsidiaries, engages in rail and related transportation business in North America. It transports various goods, including petroleum and chemicals, grain and fertilizers, coal, metals and minerals, forest products, intermodal, and automotive products. The company operates a network of approximately 20,100 route miles of track that spans Canada and mid-America, connecting three coasts: the Atlantic, the Pacific, and the Gulf of Mexico. It serves the ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama), as well as the metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth (Minnesota)/Superior (Wisconsin), Green Bay (Wisconsin), Minneapolis/St. Paul, Memphis and Jackson (Mississippi), with connections to all points in North America.
Take a look at the 1-year chart of Canadian (NYSE: CNI) below with my added notations:
1-year chart of Canadian (NYSE: CNI)
CNI has formed a clear resistance at $70 (green). In addition, the stock is climbing a short-term, uptrending support level (red) over the last several months. These two levels combined have CNI stuck within a common chart pattern known as an ascending triangle. Eventually, the stock will have to break one of those levels.

The Tale of the Tape: CNI has an uptrending support and a $70 resistance level to watch. A long trade could be made on a breakout above $70 or on a pullback to the trendline. A break below the trendline support would be an opportunity to enter a short trade.
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