Shares of CSX Corporation (NASDAQ:CSX) fell after the transport stock reported earnings that beat Wall Street expectations. Does it sound weird, it is falling on an earnings beat? Upon a closer look, some accounting maneuvers allowed for that beat. If you back out those shady dealings, CSX Corporation actually missed earnings. This explains why it is falling. Being a technical chart trader, I have been bearish on CSX Corporation. I just cannot make sense of a railroad stock trading at a 30 P/E ratio. Are we living in the late 1800's? On a technical chart basis, CSX Corporation had a significant breakdown today. The stock gapped below the daily 20, 50 moving averages as well as a major trend line (seen in the chart below). This signals further downside is very likely. I have a $47 target penciled in, and should be achieved within the next month or so. Once at $47, CSX Corporation should see a solid bounce higher.
