UNP Watch

Amusingly, a day after Jim Cramer put out a buy list with Union pacific Corp. (UNP) on it, analysts have downgraded the railroad company's stock.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
UNP $70.75

At 12:33 p.m. Eastern

So it's Wall $treet vs. the "Buy!Buy!Buy!" guy.

In terms of technical analysis, UNP is a mixed bag; if it tilts either way, it is only very slightly.

On the bull side,

The price has seen three intra-day rises in a row.

The macd, although in bear phase, is rising toward the zero line.

The stochastic is ascending through the neutral zone.

On the bear side,

Declining volume on an up day (Wednesday)

The macd 9-day moving average on May 20 moved below the zero-line for the first time since March 4. The macd ma9 is a slower oscillator that carries a lot of weight.

The price well off the swing high of $78.68 set on April 30.

The price is below the 20-day moving average.

In a broader view, UNP began its present uptrend on March 9 at $33.28, and has since set a series of higher highs and high lower that has propelled it above $70.

However, the price remains well below the pre-recessin high of $85.80.

Reversal Levels

• $78.61, +11.1%
• $77.03, +8.9%
• $70.75 <== You are here.


• $69.78, -1.4%


• $65.99, -6.7%

In the table above I ignore the flash-crash low set on May 6. All in all, given the longer-term price pattern, I think I'm in Cramer's camp on this one. I'll have more confidence once the macd moves above zero, especially if the macd ma9 turns up. It would also be a real bullish sign if UNP could pierce the 20-day simple moving average, now at $72.87.

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Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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