Union Pacific (UNP) looks like it is still "tracking" higher. The signals ahead are green with prices headed in the right direction above the rising 50-day and 200-day moving average lines.
Traders should look to be buyers but let's back things up a bit and check the charts and indicators before we high ball it out of here.
In this updated daily bar chart of UNP, below, we can see that prices are in an uptrend since June. There is a test of the rising 200-day moving average line in early November that probably was the best buying opportunity of the past 12 months. The 50-day and 200-day moving averages have positive slopes.
The daily On-Balance-Volume (OBV) line started a second advance in early November and has confirmed and supported the rally. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line now in a bullish configuration and close to a fresh crossover and buy signal.
In this weekly bar chart of UNP, below, we can see a V-bottom in early 2016 and then a strong advance as prices cleared the 40-week moving average line and the slope of the line turned positive. The weekly OBV line has been bullish since January 2016. The weekly MACD oscillator turned up above the zero line in June of 2016 and is poised for a fresh go long signal.
In this Point and Figure chart of UNP, below, we can see the V-bottom and the rally. The recent trade at $112 was a fresh double-top breakout and lets us give a potential price target of $156 for UNP.
Bottom line: UNP might trade sideways for a while further but I would look for the uptrend to resume before too long. Traders could go long near $110 risking a close below $106 and then add to longs on a close above $115. The $150-$160 area is our price objective in the next few months.