UpdateApril 19, 2001
Union Pacific has broken out to a new 52-week high after 14 sessions of sideways trading. On Wednesday, shares of UNP hit an intra-day high of $59.10 following a surprise rate cut from the Fed. On Thursday, the stock hit a 52-week high of $59.60 before pulling back to close at $59.50 on volume of 1.18 million shares. UNP is beginning to surge as we move closer to its earnings report scheduled on April 26th before the bell. The stock has cleared major resistance, so it may be able to keep its upward momentum alive for a few more days. In the meantime, support is now up to Thursday’s intra-day low of $58.75 with additional support at $57.63, the April 2nd intra-day high. Resistance has moved up to the 7/19/99 intra-day high of $60.68 and then the 6/10/99 intra-day high of $62.25. Traders may consider starting new plays on a bounce off of $58.75 or a breakout above $60.68 on volume of at least 600,000 by noon. Our stops remain at $54.50.
Picked on April 3rd @ $57.35
Change since picked +2.15
Stop Loss @ $54.50
April 17, 2001
Union Pacific is having trouble breaking through resistance at $57.63. On Monday, the stock traded to an intra-day high of $57.60 before pulling back to a close of $57.10. On Tuesday, the stock reached an intra-day high of $57.47 just before the closing bell. UNP has failed to take out resistance on five consecutive attempts, so the stock may be stuck in a tight trading range until we see the earnings report, expected on April 26th before the bell. The company pre-announced an earnings surprise last week and the news may be factored into the current stock price. However, the company announced a new boxcar "shuttle train" that offers one-call, door-to-door, multiple-stop service, inventory control, and direct store delivery to points between the Pacific Northwest and Southern California. The news came out after the bell on Tuesday, so the stock may be able to break out on the news. Going forward, support is the 5-dma at $57.07 with stronger support at $56.64, the 10-dma. Resistance is the 52-week high of $57.63 and then the 7/22/99 intra-day high of $58.31. A bounce off of $57.07 or a breakout above $57.63 on midday volume greater than 600,000 shares may be possible entry points. We are leaving our stops at $54.50 as downside protection.
Picked on April 3rd @ $57.35
Change since picked +0.00
Stop Loss @ $54.50
April 12, 2001
Union Pacific is doing battle with major resistance at $57.63. On Wednesday, UNP opened at $57.50 but that turned out to be the intra-day high. On Thursday, shares of UNP traded to an intra-day high of $57.15 but it failed to break resistance for the third straight session. Unfortunately, the stock may not see an earnings run because the company basically pre-announced an earnings surprise on Tuesday. UNP may spend more time consolidating in the $54.50-$57.50 range until we see the actual earnings report, expected on April 20th. In the meantime, support is the 5-dma at $56.37 with stronger support at $55.72, the April 6th intra-day low. Resistance is Thursday’s intra-day high of $57.15 and then $57.63, the 52-week high. Traders should be looking for a bounce off of $56.37 or a move above $57.15 on midday volume greater than 600,000 shares before starting new plays. Our stops are holding steady at $54.50.
Picked on April 3rd @ $57.35
Change since picked –0.37
Stop Loss @ $54.50
