UNP closes above its opening price after recovering from early selling pressure
Union Pacific Corporation (UNP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
UNP ended the month 2.53% higher at 173.35 after edging higher $0.55 (0.32%) today on high volume, slightly underperforming the S&P 500 (0.77%). Trading up to $4.84 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (UNP as at Jul 31, 2020):
Friday's trading range has been $6.12 (3.55%), that's far above the last trading month's daily average range of $3.91. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UNP.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on March 2nd, UNP actually lost -1.87% on the following trading day.
After trading as low as 167.57 during the day, the share found support at the 50-day moving average at 171.76.
Although Union Pacific is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Union Pacific. Out of 43 times, UNP closed higher 58.14% 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 67.44% with an average market move of 1.64%.