Most of the railroad stocks declined sharply lower, Wednesday, after a very weak earnings report from CSX Corporation (NASDAQ:CSX). The company said it expects revenue to fall by as much as 2% in 2019. Prior to the report, the company was forecasting an increase of 1 to 2%. Currently, CSX stock is declining lower by $8.52 (-10.50) to $71.05 a share and is now trading below its 200-day moving average, which puts the stock in a weak technical position. Traders and investors must now watch for further downside in the coming days and weeks ahead.
Watch This Support
The next major support level for CSX is around the $65 area. This level is where the 100-week moving average is currently and should be defended when tested. Other railroad stocks that are falling in sympathy to CSX include Norfolk Southern (NYSE:NSC), Union Pacific (NYSE:UNP) and Kansas City Southern (NYSE:KSU).