Hi Traders,
Licia Leslie here with your Norfolk Southern Corp. (Ticker: NSC) chart analysis.
Just like the overall market, NSC has been in a downtrend since January 2022.
It traded a high just shy of $300 (by $.80) on Dec. 31, 2021.
The low was made on Oct. 20, 2022, when it traded $203.65, having lost a third of its value.
It rallied from there back to $260 where it hit the resistance of the downtrend line which began at that high of $300.
It tested $260 three times before heading lower again on Feb. 3, 2023 – the day of the East Palestine crash.
NSC ttraded straight down to $220.50 in fourteen trading days.
This downtrend halted on Feb. 24, 2023, with a bullish engulfing candle:
Remember: a bullish engulfing candle is found at the bottom of a downtrend and completely encloses the real body (colored part) of the previous session’s candle.
It denotes a change in trend.
NSC has begun to rally from here.
I have placed a shorter term downtrend line that begins on Feb. 2, 2023.
The recent rally was stopped by this resistance. It traded through it intraday, but could not close above it.
Remember this, too: the close is always more important than the intraday movement.
If NSC can close above this resistance, I think it will trade back up to the 200-day moving average at $239.
If this resistance holds, NSC will retest the most recent low of $220 and possibly the previous low just above $200.
Trade accordingly.
Thanks for Reading …
Licia Leslie