A similar setup is shaping up in shares of railroad stock CSX ( CSX). Despite going into 2011 as a defensive favorite, CSX is another name that got shellacked in the last year, falling 15% at the same time the S&P was able to post meager gains. Part of that weakness comes from CSX's status as a transport sector stalwart. At the front end of the business cycle, transport stocks suffer first when times get tough. But on the flipside, they're also the first to benefit when the economy rebounds. Now investors are getting signaled that it's time to board this train. Like Juniper, CSX is forming an ascending triangle bottom, in this case with a resistance range between $23 and $23.50. While the existence of a resistance range makes the setup in CSX a bit tougher to trade, the basic rules are the same: we're looking for a breakout above $23 before it makes sense to buy. Because of that secondary resistance level at $23.50, we don't have as clear a view of where the glut of supply of shares exists for CXS. For that reason, I'd recommend taking on a starter position at $23, then scaling into the stock as it pushes through $23.50. Regardless of how you opt to enter the trade, it makes a lot of sense to keep a protective stop just below the $21 swing low. CSX, one of Highbridge Capital Management's holdings, was one of 7 UBS Stock Picks for 2012.