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This morning, 21 cars on a Norfolk Southern (NSC) train carrying crude oil and propane derailed outside Vandergrift, Penn. Luckily, there was minimal leakage. But it has been a record year for train derailments, with many more serious incidents. This has prompted lawmakers to consider new legislative requirements for tank cars. Three companies in the rail-car space could see increased sales based on these potential changes.

American Railcar Industries (ARII) has been trading in a channel consolidation for the past month and it the shares were moving above channel resistance in recent trading. The Relative Strength Index and moving average convergence/divergence while flat during the consolidation period are still above their centerlines. Chaikin Money Flow reflects accumulation. The stock is a speculative buy at its current level, but a more conservative approach would be to wait for a close above resistance; in either case, use a position size that accommodates a stop under channel support. There is 25% short interest in the stock, and it is a good candidate for a covering rally....203 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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