Canadian National Railway Co. engages in rail and related transportation business. The firm services include rail, intermodal, trucking, supply chain services, business development and maps and network. Its offers their services in automotive, coal, fertilizer, food and beverages, forest products, dimensional loads, grain, metals and minerals and petroleum and chemicals industries.
Take a look at the 1-year chart of Canadian (NYSE: CNI) below with the added notations…
Chart of CNI provided by TradingView
Over the past several months, CNI has formed an important level to watch at the $125 (blue) mark, as that level has provided both support and resistance. CNI is currently sitting just under that level now, and a further rally could bring another test of the $125 resistance.
The Tale of the Tape: CNI has a key level at $125. A trader could enter a long position on a break that level with a stop placed below it. However, if traders are bearish on the stock, a short trade could be made on a rally back up to $125 instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Good luck!
Christian Tharp, CMT
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