When the Price of Canadian National Railway CNI Talks, People Listen

December 12, 2021, 03:15 am ET, BY Robert S.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

This is not EF Hutton, but it could be more #powerful.  A picture speaks a thousand words, they say, and the #priceaction of Canadian National Railway (NYSE: CNI) tells an important story.  The movement tells us where investors perceive value, or the lack of it, and if we pay attention we can capture opportunity.  The data below for CNI can be used as an example, and demonstrate how to do this for other stocks too.  This data was current at the time of publication, but it is not updated in real time here. If you want real time updates, or data on a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for CNI

• Buy CNI slightly over 121.67 target 130.79 stop loss @ 121.32 Details

The technical summary data tells us to buy CNI near 121.67 with an upside target of 130.79. This data also tells us to set a stop loss @ 121.32 to protect against excessive loss in case the stock begins to move against the trade. 121.67 is the first level of support below 129.44 , and by rule, any test of support is a buy signal. In this case, support 121.67 is being tested, a buy signal would exist.

• Short CNI under 130.79, target 121.67, stop loss @ 131.17 Details

The technical summary data is suggesting a short of CNI as it gets near 130.79 with a downside target of 121.67. We should have a stop loss in place at 131.17though. 130.79 is the first level of resistance above 129.44, and by rule, any test of resistance is a short signal. In this case, if resistance 130.79 is being tested, a short signal would exist.

Swing Trading Plans for CNI

• Buy CNI slightly over 130.79, target 131.14, Stop Loss @ 130.41 Details

If 130.79 begins to break higher, the technical summary data tells us to buy CNI just slightly over 130.79, with an upside target of 131.14. The data also tells us to set a stop loss @ 130.41 in case the stock turns against the trade. 130.79 is the first level of resistance above 129.44, and by rule, any break above resistance is a buy signal. In this case, 130.79, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short CNI near 130.79, target 127.97, Stop Loss @ 131.17. Details

The technical summary data is suggesting a short of CNI if it tests 130.79 with a downside target of 127.97. We should have a stop loss in place at 131.17 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 130.79, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for CNI

• Buy CNI slightly over 130.79, target 131.14, Stop Loss @ 130.48 Details

If 130.79 begins to break higher, the technical summary data tells us to buy CNI just slightly over 130.79, with an upside target of 131.14. The data also tells us to set a stop loss @ 130.48 in case the stock turns against the trade. 130.79 is the first level of resistance above 129.44, and by rule, any break above resistance is a buy signal. In this case, 130.79, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short CNI near 130.79, target 128.83, Stop Loss @ 131.1. Details

The technical summary data is suggesting a short of CNI if it tests 130.79 with a downside target of 128.83. We should have a stop loss in place at 131.1 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 130.79, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

CNI Ratings for December 12:

Term →	Near	Mid	Long
Rating	Neutral	Neutral	Strong
P1	0	0	112.66
P2	128.83	127.97	121.67
P3	131.53	131.14	130.79

Support and Resistance Plot Chart for CNI

Real Time Updates for Repeat Institutional Readers:

Factset: Request User/Pass

Bloomberg, Reuters, Refinitiv, Zacks, or IB users: Access Here.