Norfolk Southern Issues Buy Signal
by Sam Collins 08/05/09
Norfolk Southern Corp. (NSC) -- This rail transportation company and its subsidiaries engage in the movement of raw materials, intermediate products and finished goods that represent a broad cross-section of the economy, with an emphasis on energy (coal).
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The stock fell from more than $75 in August 2008 to $27 in March, but since then traced a cup-and-handle formation (very bullish) with a breakout above its 200-day moving average in July.
Several days ago, NSC signaled a short-term buy when the 20-day moving average crossed over the 200-day, and the stochastic turned sharply higher.
The target for a trade is $50, but the longer-term target is $55 to $60.
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