The price chart of Union Pacific (UNP) is showing some short-term improvement, but the long-term trend could still be headed farther down the line.
UNP has turned up enough to test the declining 50-day moving average, see chart above. Also, we can see a bullish divergence between the lower lows in price from December to January and the higher lows from the momentum study in the bottom panel.
This longer-term chart of UNP, above, may be the overriding chart of the day. The 40-week moving average is in a clear downtrend. The On-Balance-Volume (OBV) line is pointed down from its 2014 high. The Moving Average Convergence Divergence (MACD) oscillator is very negative and in a sell mode.
Prices have broken the support from 2013, so we need to look back to the $60 area from 2012 as next support. The short-term picture of UNP may continue to improve and rebase, with a $70 to perhaps mid-$80s trading range. But if sellers pressure UNP further, the $60 level should be next support.