Norfolk Southern Corporation, together with its subsidiaries, engages
in the rail transportation of raw materials, intermediate products, and
finished goods. As of December 31, 2014, it operated approximately
20,000 miles of road in 22 states and the District of Columbia. The
company also operates scheduled passenger trains; transports overseas
freight through various Atlantic and Gulf Coast ports; and provides
logistics services. In addition, it provides bimodal truckload
transportation services primarily utilizing RoadRailer trailers, a
hybrid technology that facilitates over-the-road and on-the-rail
transportation in the eastern United States, as well as in Ontario and
Quebec through a network of terminals.
Take a look at the 1-year chart of Norfolk (NYSE: NSC) below with my added notations:
NSC has been on a steady downhill slide over the past 10 months.
During the last 2 months of the decline, and recent rally, NSC created a
clear level of resistance at $80 (green), which had also been support
prior. A break above that $80 level should mean higher prices for the
stock, and yesterday NSC broke that level.
The Tale of the Tape: NSC broke through its key
level of resistance at $80. A long trade could be entered on a pull back
down to that level. However, a break back below $80 could negate the
forecast for a higher move and would be an opportunity to get short the
stock.
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