On April 5, This ‘X’ Pattern Changes Everything

It appeared before Ambrx Biopharma climbed 175%... before AMC soared over 1,000%... Now, it’s appearing in multiple stocks on a regular basis. Luke Lango believes he’s cracked the code. On April 5, he’s going to reveal everything – including a free X-pattern pick.

Wed, April 5 at 4:00PM ET

NSC Stock is Not Out of the Woods Yet

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

As a rail stock, Norfolk Southern Corporation (NYSE:NSC) is sensitive to ongoing trade negotiations, which have been looking a little better over the last week as optimism builds.

However, trade worries have probably done a lot to keep most transportation stocks range-bound, which has been an issue for NSC as well.

While we feel that the bullish case for transportation and railroad stocks will get stronger as the trade issues get resolved, there is enough uncertainty for us to approach this opportunity from an income perspective.
As you can see in the chart above, NSC has rebounded from its October lows and has turned lower after tapping short-term resistance at the $172.50 level.

The stock has a lot of support at the $155 level as well, so we are expecting it to channel sideways for a while until the outlook for trade is clearer.

With that in mind, we recommend selling a covered call against the stock for traders who are already holding the shares.

And if the market continues to channel sideways, we may wind up rolling the NSC calls out again later this month to collect even more premium.

To get all the details and see exactly how we are trading this situation with options — and to get access to our full portfolio of promising trades — consider signing up for risk-free trial subscription to Strategic Trader today. 

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 Strategic Trader.

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

Article printed from InvestorPlace Media, https://investorplace.com/2018/11/this-stocks-not-out-of-the-woods-yet/.

©2023 InvestorPlace Media, LLC