Union Pacific Corp. (UNP) has been in a strong uptrend the past three years. Prices have struggled a little in recent months to make gains but longs should continue to hold positions as the technical tracks are still bullish.
In this daily bar chart of UNP, below, we can see a pattern of higher highs and higher lows the past twelve months. Prices are above the rising 50-day moving average line as well as the bullish 200-day line. The volume pattern is hard to interpret but the daily On-Balance-Volume (OBV) line shows a rising/bullish pattern for the most part. Prices made new highs in August but the OBV line has yet to confirm. The Moving Average Convergence Divergence (MACD) oscillator is pointed down in a take profits stance but new price highs could reverse it to the upside.
In this weekly bar chart of UNP, below, we can see a positive picture. Prices have been trending higher for nearly three years. UNP is above the rising 40-week moving average line. The weekly OBV line has a long-term bull trend but could use a new high to confirm the new price highs this month. The weekly MACD oscillator is poised to turn up to a fresh outright go long signal.
In this Point and Figure chart of UNP, below, we can see a fresh upside breakout and a new price target of almost $164.
Bottom line strategy: UNP looks like it will travel higher with a target in the mid-$160's. Traders should risk below $144 and investors below $139.