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Railroad Leader Coiling in Flag as Cup and Handle Forms

by | Oct 6, 2024

Norfolk Southern (NSC) shares of the railway leader are forming a solid bull flag on the right side of a cup and handle into the rising 55-day MA support and monthly value low near 245 which held last Thursday as buyers defended and closed the week back over the 8 day MA. Potential now to rotate up and push to the top of value at 254short term while a bigger breakout from this pattern above that would see an objective of 270 where a longer term VPOC is sitting above. NSC does not see a lot of options flows but still has the 250 January $270 calls holding in OI from buyers that was part of a bull risk reversal also shorting the Jan $190 puts.

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