The Train is Heading Back to the Roundhouse

My son opened a Chuggington Roundhouse for Christmas much like the one above. Thrilled him to no end. I asked him why it was so special and he answered, “Now my Chuggers will have some place to come back and sleep at the end of the day.” Makes sense, a train has to come home and sleep after a long days work. He also received his first electric train. There is only enough track for it to go around in an oval. Constantly revisiting old territory. These two got me thinking, about the charts of the railroad stocks, Kansas City Southern, $KSU, Norfolk Southern, $NSC, and Union Pacific, $UNP. These charts have been revisiting their home bases after working high as well and look ready to come back for a rest again.

Kansas City Southern, $KSU

Kansas City Southern, $KSU, ran higher like all of the train stock from the October low but is now basing or consolidating in a wide range between 62 and 70. After its latest run it printed a Doji reversal candle Tuesday that confirmed lower Wednesday. Looks like it is heading back to the Roundhouse for a nap and some more energy.

Norfolk Southern, $NSC

Norfolk Southern, $NSC, has the same price action pattern off of the October low. Notice like $KSU it made a lower high with this recent Doji as it heads back lower revisiting old ground.

Union Pacific, $UNP

Union Pacific, $UNP, has a similar pattern to both of the previous railroads rising from October then moving in a channel. But this Chugger seems to have a bit more energy, having made a higher high before turning. It still looks like it is heading back to the Roundhouse with the Relative Strength Index (RSI) turned lower and the Moving Average Convergence Divergence (MACD) indicator weakening, like the others, but this is easily the strongest of the three. All railroads are not the same.

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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.

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