Norfolk Southern: #PowerStocks Series Pick Of The Week (May 2026)

The blockade at the Strait of Hormuz continues. Talks with Iran look to have stalled. Oil is back above $100 a barrel. But, the US stock market hasn't responded to the developments in the Middle East lately. Instead, the market has been rising nonstop, forming new all-time highs almost every day. Guess which stocks have been flying alongside the S&P 500? Yes, many technology and industrial stocks have been rising hard. And this week's #PowerStocks pick belongs to the Industrials sector. But before sharing my findings for this week's #PowerStocks pick, are you curious to find out how the stocks shared in April performed?

1. Copart: -1.2% loss
2. Bath & Body Works: -9.1% loss
3. Marriott: No entry
4. Analog Devices: No entry

April started strong. I was waiting for a pullback, for the market to continue sliding a little more before soaring. But President Donald Trump had other plans in early April. It turned out that the US had been pushing for a ceasefire with Iran. This sent the S&P 500 higher by over 2.5% in a day! When was the last time the S&P 500 jumped by a similar magnitude? 12 May 2025. Before the ceasefire deal was announced, I was still pretty bearish about the market. Hence, I was seeking a short position on Copart and Bath & Body Works, and both trades turned out to be bummers. The market has since turned bullish, shifting my bias accordingly. Marriott's price action was favorable, but I didn't take this trade because the company will announce its earnings in a few days. Trading over earnings is a huge risk, something that I'm not prepared to take. How did last week's #PowerStocks pick, Analog Devices, perform? Let's review it in the next section.

Review Of Last Week's Pick Of The Week

Analog Devices (ADI) was last week's #PowerStocks pick. It's a US semiconductor company ranked 15th globally by market capitalization. After surging by more than 16%, I anticipated a pullback soon. And it did. The shares of Analog Devices began pulling back soon after, nearly reaching its identified support area. But before it reached its support area, it decided to soar. Boy, I missed this trade by a mere $2. Am I still looking to take this trade? Head over to my Telegram Channel to find out! Speaking of Telegram, my team and I will never ask you for your hard-earned money for "investments". I know and understand that the allure of high returns without effort is highly attractive. It breaks my heart when I hear of people falling for impersonation scams.

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Why Is Swing Trading Norfolk Southern (NSC) Worth It?

Source: norfolksouthern.com

Norfolk Southern is primarily a rail transportation company. The company is also involved in property leases and sales, as well as wireline, pipeline, and fiber-optics projects, among others. Blessed with a massive market capitalization of over $70b, Norfolk Southern is the 4th largest railway company in the world. Despite its huge market capitalization, its shares have consistently burst upwards in price. In the past 11 months, its shares have burst upwards 13 times, with each upmove measuring between 4% and 12.5%! A pullback is here, and I'm waiting for it to return to this price area before I buy its shares to ride its next burst up. What's the price area I'm waiting to buy its shares at? Continue reading to get the details. P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Norfolk Southern (NSC)

What's the very 1st thing I would like to analyze from this chart above? The trend of Norfolk Southern's shares (shown in blue). This is because knowing the trend of its shares allows me to determine whether I'd look for a buying or shorting opportunity. By following its price trend, I'll greatly increase my chances of profitability. Looking at the chart above again, I see that the share price of Norfolk Southern is in a strong uptrend! Hence, I'd like to find an opportunity to buy its shares. What's next? I'll compare its share performance to that of the S&P 500 (shown in black). Why? I want my hard-earned money to work hard for me. A stronger performing stock is likely to continue bringing a return that exceeds the market's. So, I'll refer to the comparison chart above again. While the S&P 500 has risen by 3.8% in the past 3 months, the shares of Norfolk Southern have risen by 8.4%, or more than 2x! I love such an outperformance, and I would like to buy its shares for an explosive swing trade. But are there more to analyze?

How Explosive Is Norfolk Southern (NSC)?

Yes, there are more pointers to analyze before pulling the trigger to buy its shares for a swing trade. Because I aim only to ride its upmoves, which typically last for a couple of weeks, I want the shares of Norfolk Southern to possess the ability to explode upwards. Have the shares of Norfolk Southern proven to be explosive? Marking out its explosive moves in the past 11 months left me in awe. There are 13 explosive upmoves, and each of them measures between 4% and 12.5%! Here's another fact that blew my mind: Monster Beverage enjoys a huge market capitalization of more than $78b. For the shares of a company of this size to consistently explode upwards between 4% and 12.5% is mind-blowing! Additionally, I appreciate that Norfolk Southern enjoys an enormous market capitalization, as this provides an extra layer of security against manipulation. I don't wish to lose my hard-earned money to manipulation that could be easily prevented! Here comes the golden question: Is it time to buy the shares of Norfolk Southern for an explosive swing trade?

Key Price Levels

Like many things in life, timing is crucial when it comes to stock trading. Buying an explosive stock at the wrong time can result in significant losses and emotional distress. This will cause you to lose confidence, and you'll doubt yourself even when a fantastic trading opportunity arises straight from under your nose! But, is there a way to tell whether the time to buy the shares of Norfolk Southern is here? You can do so by uncovering its key price levels (also known as support and resistance zones). And that's what I've done in the chart above. Given that there's a resistance zone around $316, its shares are stuck there on 30 Apr 26, Thur, what do you think I'm planning to do? I'm waiting for its shares to break out above $316 and hold before buying to catch its next explosive upmove. Here's a pro tip: Instead of staring at your screen, consider setting a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones.

Which Instrument Should You Consider Using?

  Do you ever wonder about the instrument used to trade explosive stocks? With 3 main trading instruments available - stocks, contract-for-difference (CFD), and options, you wonder which suits you best. Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options. Here are the main similarities and differences: CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1. However, due to its unique pricing mechanism, your options price doesn't rise by the same amount. In fact, depending on the market conditions, the price of your options contract may even drop! Your CFD broker will charge you a finance fee for lending you money for your trade. However, no lending is required for options, so there is no finance charge. Because there's a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons. Both CFDs and options are leveraged instruments because they allow you to control a larger market position with a smaller amount of capital. While CFDs do not have an expiration date, options traders must pay attention to the expiration date of their options contracts. You must be thinking, "What's the beauty of trading options?" Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.

And options don't have to be all about Math and dry!

It can be made easy to understand through real-life analogies.

In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort. Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process. Are you a CFD or options trader? I'm glad to be fluent in both. Finally, this is for educational purposes. Please perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

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The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!