Canadian National Railway (CNI.US) stock jumped more than 3.0% during today's session after the railway company announced plans to cut spending, streamline management and buy back $4 billion of stock next year. Canadian National will lead an industry shift to become more customer-oriented just as it pioneered an efficiency strategy that most peers have since adopted, Chief Executive Officer Jean-Jacques Ruest said on a conference call with analysts. Company also reaffirmed its 2021 targets of a double-digit increase in adjusted earnings per share and free cash flow. It seems that these actions are intended to appease investors who criticized the company for its failed bid to buy Kansas City Southern.
Canadian National Railway (CNI.US) stock price experienced a bigger downward correction recently. However looking at the H4 interval, one can see that buyers managed to halt decline at the upward trendline. Today stock price broke above the 50 SMA (green line) and is testing local resistance at $119.50 which coincides with 38.2% Fibonacci retracement of the last upward wave. Should a break higher occur, then the upward move may be extended to the $122.90 handle or even all-time high at $128.49. On the other hand, if sellers will manage to regain control, then nearest support lies at $116.40. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.