UNP pushes through Monday's high
Union Pacific Corporation (UNP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, UNP ended the month -0.47% lower at 169.07 after gaining $3.56 (2.15%) today, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 165.94, the stock confirmed its breakout through the prior session high after trading up to $4.27 above it intraday.
Daily Candlestick Chart (UNP as at Jun 30, 2020):
Tuesday's trading range has been $5.85 (3.55%), that's above the last trading month's daily average range of $4.73. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for UNP.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Union Pacific managed to close back above the 200-day moving average at 165.61. When this moving average was crossed above the last time on June 25th, UNP actually lost -2.62% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's low at 161.41, downside momentum might speed up should the market mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for Union Pacific. Out of 23 times, UNP closed higher 56.52% 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 69.57% with an average market move of 2.91%.