UNP hit a resistance off the Weekly + Monthly levels today with earnings coming up in exactly one week. Volatility is above average which makes buying vertical spreads attractive. I'm taking the August 90/87.5 Put spreads which were selling for 0.32. Max profit on these is 2.50 which would happen in a massive move. Getting them cheap will let me go profitable...
Have been watching this stock progress through a strong bear trend. Ideally before entry I'd like to see clear direction on the indexes.
Price is trending strongly on Weekly and Daily time frames. Taking a look at weekly we can see price is resting the monthly .500 Fib, around 70.00. This is a strong level for price, and if we can break and close below the...
UNP has broke the ABC pattern I'm waitin for a pullback to enter Long position target TP is between 120 & 124, SL=76
Risk reward ratio is good, This is my first Idea and I make it only for my record
Note: do not take it as investing Idea, I'm only trying to applicate what I learned.
UNP has been a profitable trending stock but, as with many other positions, the October pullback was too deep to justify remaining in the trade.
On the weekly chart the trend has remained pretty much intact since January 2012, even with the recent pullback. Price did not breach the 50ma, and only spiked below the 100 figure.
But on the daily chart the pullbacks...
The chart pattern in UNP could be a bull flag , projecting much higher, or an important breakdown. Already, the moving averages have crossed down, and an ATR sell stop signal is close to triggering. Rails are just as important in this rally, as they were in 1929.
After a rally of 772% from 1987 and 364% from 2009.On the daily UNP is shaping a H&S. If you are not impressed by the hyperbolic slant, showing the pure impact of inflation on Giffen goods, look at the precision of each 76.4% retracement.
