UNP closes higher for the 3rd day in a row
Union Pacific Corporation (UNP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, UNP finished Thursday at 142.49 gaining $9.58 (7.21%) on low volume, outperforming the S&P 500 (6.24%). Closing above Wednesday's high at 141.09, the stock confirmed its breakout through the prior session high after trading up to $2.30 above it intraday.
Daily Candlestick Chart (UNP as at Mar 26, 2020):
Thursday's trading range has been $9.37 (6.84%), that's slightly below the last trading month's daily average range of $10.39. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for UNP.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, UNP gained 3.13% on the following trading day.
Union Pacific managed to close above the 20-day moving average at 138.87 for the first time since February 20th. Prices are trading close to the key technical resistance level at 143.85 (R1).
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Union Pacific. Out of 159 times, UNP closed higher 54.09% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.15% with an average market move of 0.94%.