Lost in the shuffle of Thursday’s bull surge to fresh highs on most of the major averages was the notable weakness, post-earnings, in Union Pacific.
The largest publicly-traded rail in the world has been weakening fro quite some time. And unlike AXP GOOG, Union Pacific did not bust up and out of a potential head and shoulders top after earmings, which is why I am presenting it to you again.
You can see the weakness after a multi-quarter uptrend for yourself on the chart below.
So I will leave this as an open forum—Are you are a buyer here? Short-seller? Or sidelined on this major rail?
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Sidelined. Though, I love this play and believe this is because of one time factor, the price action has been quite weak on this for a while. So, will wait and see whether a base is going to form..But H&S looks scary for now…
Thanks!
Tempting chart. But all the other US rails seem to be flirting with breaking to all-time highs, and the Canadians are even further along in price action. Not a sector I want to short, especially while oil is holding up in price.
Interesting on oil.
i hate head & shoulder patterns. Most are busted, while others effectively “brush the dirt off the shoulder” before actually completing to target. I’ve rarely traded one well.
Yes, they typically tease several times before triggering, even when they prove true.