CSX stock price recovered 12% approx from the recent swing low and is trying to sustain the price above $30.00. CSX price has managed to climb above the 50 and 200 day EMA showcase positional trend is in the upward direction. However, the price is near to the supply zone and it will be difficult for bulls to dominate on the higher levels.
CSX Corporation (NASDAQ: CSX) released previous quarter earnings on April 20, 2023. It reported an EPS of $0.48 and revenue at $3.706 Billion. Company beat the EPS estimate by 12.64% and revenue estimate by 3.55%.
CSX stock price also reacted positively after earnings and attempted to break the $32.00 hurdle level. However, the breakout failed and prices witnessed profit booking. The short term correction halted near $30.00 and prices entered into consolidation.
CSX stock price closed the previous session at $30.93 with an intraday decline of -0.45%. The market capitalization at $62.88 Billion. At the mid of March, CSX price took support at $27.60 and formed a bullish engulfing pattern. It showed the signs of the bullish trend reversal and prices began to rise by forming higher highs.
Will CSX stock price continue to rise?
CSX stock price tried multiple times to break out of the $34.00 hurdle but got rejected. It indicates sellers are active in the supply zone. However, if buyers succeed to hold the price above the 200 day EMA then the probability of $34.00 breakout will remain high.
On the other hand, if the price dropped below $29.00 then bears may try to drag it down to the previous lows. If the overall market sentiment remains bullish then it may positively impact the prices of CSX stock. The technical analysis suggests, CSX stock price is in uptrend. Till the price holds $29.00 level the possibility of rebound is high.
CSX stock may consolidate for base creation
CSX stock price forming a long tail bearish rejection candle on a weekly timeframe. It shows sellers are again getting active. However, The stock may consolidate for some time in the narrow range for the base creation before deciding further direction.
The technical indicators like MACD had generated a positive crossover indicating prices are likely to trade with bullish bias. The RSI at 55 near the neutral zone shows an equal level of tug of war between buyers and sellers.
Conclusion
CSX stock price showed a surprising rally and recovered 12% approx from the swing low. However, the upward momentum halted near $32.00 and prices are trying to sustain above the 200 day EMA. The technical analysis suggests, CSX stock price is in uptrend. Till price holds $29.00, the probability of reaching $34.00 by the end of 2023 remains high.
Technical levels
Resistance levels : $32.00 and $33.35
Support levels : $29.00 and $27.60
