Going LONG or SHORT in Rail Companies? Series III: UNP

This week on Long & Short Investment, we examined two Rail companies so far: CSX and NSC.  We found that both companies revealed very similar characteristics as both are headed much lower.  Today, we will apply technical analysis on UNP to see if it also similar characteristics as previous two companies.

In looking at the technical analysis on one year chart on Union Pacific Corporation, it is clear that it also looks much like the other Rail companies.  Once it broke the upper resistance level at around $64.50, it slowly inched higher before heading back towards now the support line at $64.50.  There is a strong upward support line so there could be some difficulty breaking this support.  As long as UNP stays above this upward support line, this stock will continue to move higher despite what other Rail companies are doing.  A break below the upward support line would means UNP will most likely head toward the next support level at $54.

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Going LONG or SHORT in Rail Companies? Series I: CSX 
Going LONG or SHORT in Rail Companies? Series II: NSC

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