An uptrend in relative strength for railroad Union Pacific (UNP) peaked back in April and since then, it has been trending back downward in the rankings of the SIA S&P 100 Index Report. It recently slipped back into the Red Unfavored Zone and finished yesterday in 54th place, down one position on the day.
Selling pressure against Union Pacific (UNP) has intensified lately and a major breakdown appears to be underway. In the last few weeks, the shares have tumbled away from another lower high, breaking down below its 50 Day average at $225.00, snapping a former uptrend, staging a breakaway gap downward, taking out their June low, and finally closing below $200.00, all on a big spike in volumes.
Potential downside support levels on trend appear near $191.50, then $175.00 and $165.00 based on previous lows. Initial resistance on a bounce appears near $215.00.
A new downtrend has been emerging in Union Pacific (UNP) shares since they peaked back in April. A spring selloff was partially corrected by a summer rebound, which then peaked at a lower high. In recent weeks, the shares have turned downward once again, recently completing a bearish Double Bottom breakdown to signal the start of a new downleg.
Initial support tests appear near $186.15 and $175.60, based on previous column highs and lows, then $165.50, where a vertical count and a horizontal count converge. Initial rebound resistance appears near $214.10 based on a 3-box reversal.
With its bearish SMAX score decreasing to 4, UNP is exhibiting weakness against the asset classes.
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