During Thursday's Mad Money program Jim Cramer noted that we saw bond yields and manufactured goods orders rise during the session. Railroad Union Pacific Corp. ( UNP) also gave investors a better-than-expected outlook that sent shares up 3.8%.
I wonder what the charts and indicators look like for this member of the Dow Jones Transportation Average? Let's check.
In the daily bar chart of UNP, below, we can see that after a rally from its late-December low a sideways period of trading has confined prices. The bottom end of the band seems to be the $160-$155 area and the $180 area has marked the topside. Thursday UNP closed back above the rising 200-day moving average line but stopped short of the underside of the declining 50-day line.
The daily On-Balance-Volume (OBV) line has been in a sideways pattern the past five months suggesting that buyers and sellers of UNP have been balanced. The Moving Average Convergence Divergence (MACD) oscillator is about to cross to the upside for a cover shorts buy signal.
In the weekly bar chart of UNP, below, we can see that prices have doubled in the past three years -- not bad. Prices are just now back above the cresting 40-week moving average line.
The weekly OBV line is more positive looking than the daily version above. The MACD oscillator is in a take profits mode and pointed down towards the zero line.
In this Point and Figure chart of UNP, below, we can see a potential upside price target of $178.53. This is short of a new high, however.
Bottom-line strategy: UNP may be able to rally back to the upper end of its trading range but a breakout to new highs does not seem to be in cards just yet.
