The transports have been a powerful force over the last 6 months, continuing to make new highs. And within the sector the railroads are chugging along as they move higher. One, Union Pacific (NYSE:UNP), is carrying the fleet higher, blazing a new trail. But there are two railroads that are sitting on the edge of a break out, Kansas City Southern, (NYSE:KSU) and Norfolk Southern, (NYSE:NSC). They might just need some confidence to break higher. Come everyone, chant it with me. “I think I can, I think I can….”
Kansas City Southern gapped lower in January and made a double bottom in February. Since then it has been tightening against the resistance between 104.25 and 106. A break higher would look for a gap fill above 116. The momentum indicators RSI and MACD both support a move higher as well.
Norfolk Southern has not had a set back, but just a steady move higher that has turned into a consolidation between 93 and 98 since the beginning of March. Pressing on the top of the range again form a higher low, it has support to break through from a rising RSI and MACD. Both are bullish as well. This little engine could move $5 on the break higher.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.