United Pacific Corporation (NYSE: UNP) stock shows a double bottom pattern near $200 and is looking for a relief rally. Moreover, the price action indicates that UNP stock has filled the gap near the $200 mark. UNP share price is trading below the significant moving averages and is trying to attain a reversal above the immediate hurdle of $210. Since the last quarter (Q2), UNP stock was in a correction phase and lost the gains from the highs of $240 and has retested the demand zone of $200. Thereafter, UNP stock managed the gains and buyers are showing their willingness to regain the swing highs.
UNP stock has faced the immediate barrier of $220 and retraced toward the support zone of $200. Bulls, unsuccessfully tried to lift off from the $225 mark amid the Q3 earnings results.
Per the options chain, at the strike price of $205, open interest of 404 hundred shares on the put side, whereas open interest of 101 hundred shares on the call side ( Data from the Nasdaq.com). This chain indicates the long buildup and buyers are accumulating the stock to retest the neckline of $220.
At press time, UNP stock price was trading at $205.80 with an intraday gain of 2.02% showing neutrality on the charts. Moreover, the trading volume increased by 1.09% to 2.89 Million and the market cap is $125.455 Billion. However, analysts have maintained a buy rating with a yearly target price of $240.70 suggesting a growth outlook.
Omaha, Nebraska-based Union Pacific is the largest public railroad in North America. Operating on more than 30,000 miles of track in the western two thirds of the U.S., UP generated roughly $22 billion of revenue in 2021 by hauling coal, industrial products, intermodal containers, agriculture goods, chemicals, and automotive goods. UP owns about one fourth of Mexican railroad Ferromex and derives about 10% of its revenue hauling freight to and from Mexico.
Will UNP Stock Surpass 20 Day EMA Hurdle?
On the daily charts, UNP stock price is below the significant moving averages under seller dominance. Moreover, the price action has witnessed that UNP stock was in a correction phase and retested the demand zone of $200. UNP stock is trading near the 38.2% Fibonacci retracement zone and held the trajectory swing of $200 highlighting the bulls’ grip.
The RSI curve suggests neutrality and shows a bearish divergence. The MACD also shows a bearish crossover suggesting the price action will be tight in the coming sessions.
Summary
UNP stock price has established base at $200. The correction has ended and stock is ready to retest the higher zones above $230. However, buyers failed to escape the immediate resistance zone ($220) and further push was noted in the last few sessions. Bulls must surpass the 20 day EMA hurdle to initiate a reversal in the upcoming sessions.
Technical Levels
Support Levels: $200 and $195
Resistance Levels: $210 and $220
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/10/31/unp-stock-nyse-unp-retested-200-will-unp-show-reversal/