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Norfolk Southern is setting up for a fresh rally leg.  The stock has been consolidating near $220.00  since late August.  The highs reached in late August followed a powerful post earnings breakout earlier in the month.  NSC has spent the entire month of October trading inside the September range.  If this consolidation ends with an upside move NSC will have plenty of room to run.  Shares are far from overbought and have very solid footing at the October lows(50D MAV).

A key near term hurdle is the $221.00 area.  Once past NSC will have little supply in the way as it pushes into new all time highs.  On the downside, a close back below $208.00 would violate the October lows indicating more sideways action is ahead. 

Earnings are due Oct. 28/AM

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