Is CSX Closing in to Resistance?

Published on Friday, 08 June 2012 08:56 Written by TradersHuddle Wire

New York, June 8th (TradersHuddle.com) - Shares of CSX Corporation (NYSE:CSX) (NYSE:CSX) are trading very close to calculated resistance at $21.69. The stock ended the trading session at just $20.99, which is near levels that make it difficult to buy or start a position.

CSX Corporation (NYSE:CSX) provides rail, intermodal, domestic container-shipping, barging, and contract logistics services around the world. The company offers rail transportation services principally throughout the eastern United States.

CSX's stock range is defined by its calculated support defined at $19.88 and by the resistance level at $21.69; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for CSX. However, as the stock pulls back towards $19.88 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $21.69 then traders will get an opportunity to enter the stock as it moves to a higher range.