We last reviewed the charts and indicators of Union Pacific (UNP) in the middle of May, and we had a bullish outlook: "UNP might trade sideways for a while further but I would look for the uptrend to resume before too long....The $150-$160 area is our price objective in the next few months." With UNP surging up above $130 a fresh look is a good idea.
In this daily bar chart of UNP, below, we can see that UNP started a new rally phase in early August. Prices are above the rising 50-day moving average line as well as the rising 200-day line. The 50-day average line crossed above the 200-day line in early October to a bullish golden cross signal. The On-Balance-Volume (OBV) line has been rising all year and recently made a new high to confirm the price action. The Moving Average Convergence Divergence (MACD) oscillator has turned upward to a fresh go long signal.
In this weekly bar chart of UNP, below, we can see that prices have surged to new highs. Price is above the rising 40-week moving average line and the weekly OBV line has made a new high to confirm the price action. The weekly MACD oscillator is in a bullish configuration.
In this Point and Figure chart of UNP, below, we can see the upside breakout at $120.05 and the intermediate-term price objective of $145.38.
Bottom line: Maintain longs in UNP. Investors could raise their stop loss protection to a close below $110 and traders could use a stop below $115. A shallow dip toward $125 could be used to do additional buying.