Going LONG or SHORT in Rail Companies? Series II: NSC

Previously on Long & Short Investment, we applied technical analysis on CSX to determine where this stock is headed and when investors should be going LONG.  In looking at the technical analysis on Norfolk Southern Corporation, we see very similar characteristics as CSX.  

NSC broke out of its resistance level around $50 late last year and continued to move higher.  With the bad earnings news from CSX, NSC also tanked, but not as much as CSX, and has now reached its support level at $49.50.  This support level is critical in that if it gets broken, then it will most likely lead to reaching the prior support level at around $42.50.  Even though often times stock price tends to bounce off from its support levels, I have a feeling that NSC will most likely break this resistance level just like CSX did last week and will head lower into next month.

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Going LONG or SHORT in Rail Companies? Series I: CSX

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