CSX Stock analysis and forecast. Trading Idea. Last Price $27.98 05/07/2014

CSX Stock analysis and forecast. Trading Idea. Last Price $27.98 05/07/2014

Hi Everybody. Today I weant to talk about CSX. This company is a transportation supplier.
Let´s see some fundamentals.
CSX is now rolling with a P/E= 15.54 and it has got an EPS=1.80

During the last two years this company has decreased its sales growth dramaticaly. Let´s see the numbers:
Average sales growth last 4 years= +7.45%
Last year 2013= 2.30%
year 2012= 0.11%
The net income growth for this company in 2013 was 0.27% compared with a 2.03% in 2012.
Let´s analyze the Chart:

The price is now developing the V Elliot wave inside a downtrend serie. As you can see the price is moving inside a box in a flat pattern. The price broke the upside trendline in the last 3 sesions. And it´s pribably the stock will probably go lower thant today.
The MACD is below zero and below it´s signal in a flat pattern.
The RSI crossed the 50% level on April the 24th and is bouncing at the 50% level in a downtrend. Actually is at 46% in a flat pattern too.
The Stochastic is flat in the Day Chart however if you see the weekly Chart the stochastic is going down.
Despite the stock drew a bullish engulfing pattern during the last sesion I can´t recomend you to buy this stock.
My recomendation is to wait until the price reach the buy range of [26.01;26.83] Near the first support level. Actually the stock is near a resistance.
Supports and resistances:
S1:26.83 S2:25.79 R1:28.33 R2:29.17
The targets once the stock will reached this buy range are:
Tg1:$28.46
Tg2:$29.12
Obiously we would make another analysis when the stock reach the buy range.
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