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Union Pacific Corporation (NYSE:UNP) technical analysis chart shows some support for the share price
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Category: Stock Market
Share Price: $161.54 Date: 6 February 2019 We take a look at one of our favourite stocks, share price on a technical analysis chart and its moving averages are showing that UNP's share price is finding support with its 50 day moving average bouncing off its 200 day moving average
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Background and overview of Union Pacific (NYSE:UNP)
For those who dont know anything about Union Pacific, the following information on the company was obtained from their website. See more at UP.com
Union Pacific CorporationUnion Pacific Corporation (NYSE:UNP) is one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, is North America's premier railroad franchise, covering 23 states across the western two-thirds of the United States.
VISION:
Building America.
Our vision symbolizes the Union Pacific experience for all the people whose lives we touch. It connects the importance of UP’s rail transportation to America's economy, honors the generations that preceded us and is the promise for the generations that will follow us.
MISSION:
The Men and Women of Union Pacific Are Dedicated to Serve.
Union Pacific works for the good of our customers, shareholders, communities and one another. Our commitment defines us and drives the economic strength of our company and our country.
VALUES:
Passion for Performance.
Our passion, concentration and determination will drive our safety, customer satisfaction and quality results.
High Ethical Standards.
Our reputation will always be a source of pride for our employees and a bond with our customers, shareholders and communities.
Work as a Team.
We are all part of the same team, and working together to reach our common goals is one of our strengths. Communication and respect are the foundation of great teamwork.
Union Pacific Railroad Fast Facts: (For Full Year 2016)
Route Miles 32,100
Employees: 42,900
Annual Payroll: $4.1 billion
Capital Spending 2016: $3.5 billion
Capital Spending 2007-2016: $34 billion
Locomotives : 8,500
Customers: 10,000
Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP). One of America's most recognized companies, Union Pacific Railroad connects 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. From 2007-2016, Union Pacific invested $34 billion in its network and operations to support America's transportation infrastructure. The railroad's diversified business mix is classified into its Agricultural Products, Energy, Industrial and Premium business groups. Union Pacific serves many of the fastest-growing U.S. population centers, operates from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways. Union Pacific provides value to its roughly 10,000 customers by delivering products in a safe, reliable, fuel-efficient and environmentally responsible manner.
Below the share price history on UNP from beginning of 2007 on our interactive share price graphic.
Please note the share price data was obtained from the following link:
http://www.macrotrends.net/stocks/charts/UNP/prices/union-pac-corp-stock-price-history
Union Pacific CorporationUnion Pacific Corporation (NYSE:UNP) is one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, is North America's premier railroad franchise, covering 23 states across the western two-thirds of the United States.
VISION:
Building America.
Our vision symbolizes the Union Pacific experience for all the people whose lives we touch. It connects the importance of UP’s rail transportation to America's economy, honors the generations that preceded us and is the promise for the generations that will follow us.
MISSION:
The Men and Women of Union Pacific Are Dedicated to Serve.
Union Pacific works for the good of our customers, shareholders, communities and one another. Our commitment defines us and drives the economic strength of our company and our country.
VALUES:
Passion for Performance.
Our passion, concentration and determination will drive our safety, customer satisfaction and quality results.
High Ethical Standards.
Our reputation will always be a source of pride for our employees and a bond with our customers, shareholders and communities.
Work as a Team.
We are all part of the same team, and working together to reach our common goals is one of our strengths. Communication and respect are the foundation of great teamwork.
Union Pacific Railroad Fast Facts: (For Full Year 2016)
Route Miles 32,100
Employees: 42,900
Annual Payroll: $4.1 billion
Capital Spending 2016: $3.5 billion
Capital Spending 2007-2016: $34 billion
Locomotives : 8,500
Customers: 10,000
Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP). One of America's most recognized companies, Union Pacific Railroad connects 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. From 2007-2016, Union Pacific invested $34 billion in its network and operations to support America's transportation infrastructure. The railroad's diversified business mix is classified into its Agricultural Products, Energy, Industrial and Premium business groups. Union Pacific serves many of the fastest-growing U.S. population centers, operates from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways. Union Pacific provides value to its roughly 10,000 customers by delivering products in a safe, reliable, fuel-efficient and environmentally responsible manner.
Below the share price history on UNP from beginning of 2007 on our interactive share price graphic.
Please note the share price data was obtained from the following link:
http://www.macrotrends.net/stocks/charts/UNP/prices/union-pac-corp-stock-price-history
Union Pacific technical analysis chart
So while users can play with the technical analysis chart above and use functions such as Fibonacci fan and Fibonacci retracement, or select various moving averages, or draw lines and add markets. We took a particular interest in what the 50SMA and 200SMA is saying about the potential direction of UNP's share price and potential support or resistance levels.
The image below shows the 50SMA and 200SMA and UNP share price in the top graphic, below that is the Moving average convergence divergence (MACD) and the bottom graphic shows the Rate of Change (RoC). Since the end of December 2018 the 50SMA has been lying on top of or just above the 200SMA. The 50SMA is an indicator of the medium term price trend of a share while the 200SMA is a indicator of a longer term trend in a stock. Should the 50SMA fall below the 200SMA it would be a bearish signal for the share. But so far the 50SMA has been on top of or just above the 200SMA, indicating that the stock is finding support at its 200SMA. Question is whether the support will hold? Currently the MACD line (black line in the middle chart), is just above the signal line (light blue). Should it fall below the signal line it would be bearish for the share and UNP's 50SMA could fall below the 200SMA support which will lead to substantial downside in the share, which could see it head to the $148 levels (basically the current value of its 200SMA).
As an aside, why is UNP one of our favourite stocks?
Well below are a few reasons:
1. High barriers to entry. Not easy for competitors to enter this market. If they want to they will in all likelihood need massive amounts of cash to either build their own infrastructure or pay per use for using the infrastructure of someone like Union Pacific
2. Railways are the veins of large country's economies. Its the most effective and cheapest way to move goods in Bulk, be it agriculture, machinery and equipment, chemicals, fuels etc.
3. Consistent dividend payer (have been paying dividends on their common stock for the last 118 years.
4. Strong economic growth in the USA will stimulate demand for goods, which is good for UNP's business.
5. Well we liked playing with trains when we were kids. No only kidding but still trains give us a warm fuzzy feeling.
Well below are a few reasons:
1. High barriers to entry. Not easy for competitors to enter this market. If they want to they will in all likelihood need massive amounts of cash to either build their own infrastructure or pay per use for using the infrastructure of someone like Union Pacific
2. Railways are the veins of large country's economies. Its the most effective and cheapest way to move goods in Bulk, be it agriculture, machinery and equipment, chemicals, fuels etc.
3. Consistent dividend payer (have been paying dividends on their common stock for the last 118 years.
4. Strong economic growth in the USA will stimulate demand for goods, which is good for UNP's business.
5. Well we liked playing with trains when we were kids. No only kidding but still trains give us a warm fuzzy feeling.