Friday, June 1, 2012

Union Pacific Corporation (NYSE: UNP)

Union Pacific Corporation owns transportation companies. Its principal operating company, Union Pacific Railroad Company, links 23 states in the western 66% of the country. Union Pacific Railroad Company's business mix includes agricultural products, automotive, chemicals, energy, industrial products and intermodal. Union Pacific Railroad Company connects with Canada's rail systems and is the railroad serving six gateways to Mexico. Union Pacific Railroad Company is a Class I railroad operating in the United States.

To review Union Pacific's stock, please take a look at the 1-year chart of UNP (Union Pacific Corporation) below with my added notations:

Since breaking to a new high in December, UNP has been consolidating within a sideways, Rectangle pattern over the last (5) months. Rectangle patterns form when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. For UNP, the Rectangle pattern has formed a $115 resistance (l. blue) and a $105 support area (navy), which was also a key resistance last year.

The Tale of the Tape: UNP has formed a Rectangle pattern between $105 and $115. A long trade could be entered on a pullback to $105 or on a breakout above $115. A short trade could be made on a rally up to $115 or on a break below $105.

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