November 22, 2010

A Good Run For Union Pacific Corporation (UNP)!!


Hello guys! It’s been a good run for the stocks of Union Pacific Corporation or UNP in the New York Stock Exchange since I mentioned that it had broken out from the ascending triangle formation last September 6 (could be a rectangle as well and kindly check here to see that post). I also posted the analysis of this stock pick of mine here in aFluc.com when it was still forming the bullish area pattern and could breakout soon (kindly check this). Anyway, the stocks’ ascent was most likely propelled by the 2010 3rd quarter net income of$778 million. Congratulations to those who were able to buy the stocks of this company!

Being able to enter at the closing price ($78.80) during the day it broke out, and selling at the current price of $91.82 would be more than a 15% gain. Not bad at all for a 2-month holding period! At present, the overall direction is upward based on the smooth 19-month uptrend. A new all-time high was set at $92.71 last November 4. Also, UNP could be forming a bullish flag formation based on my technical analysis. The significant resistance right now is the $92.71 all-time high. If the stocks continue to rise and that price mark gets cleared out, the next resistance could be the $100.00 psychological level. On the flip side, the current support is $89.21. If the stocks slip below that marker, the next support could be the 3-month uptrend. If both of those supports get broken, the next could be the 19-month uptrend. Cheers.

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