To receive further updates on this CSX Corporation (NASDAQ:CSX) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of SlingShot Trader today. 

With the news that Saudi Arabia had surpassed its production-cap levels, we think that other OPEC nations will also start to bump up their own production levels, as Saudi Arabia tends to lead the way and show other nations where the trend for oil is going.

But while oil prices and commodities seem to be stabilizing, we’re opening a new bullish trade on CSX Corporation (NASDAQ:CSX). The transportation sector in general has been performing well, and we think freight is starting to look a lot stronger in the short term.

Don’t plan to be in this trade for long, as earnings are coming up next week. CSX looks good as it breaks above a consolidation range, and we anticipate that investors will push the price higher before the quarterly reports are released.

‘Buy to open’ the CSX August 55 Calls (CSX170818C00055000) for a maximum price of $2.10.

Follow our Facebook page to receive each Trade of the Day direct to your News Feed.

You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.

Most recently, John and Wade are co-options strategists of Turbo Trader Live — a live, interactive trading room service that runs two hours every trading day the market is open. Turbo Trader Live focuses on long call and put options, as well as long and short vertical spread strategies. Find out how to get in on the live trading action and start making real profits by clicking here.