Is Union Pacific Trade Over?

Published on Tuesday, 24 August 2010 08:54 Written by Christopher Lynn

New York, August 24th (TradersHuddle.com) - Shares of Union Pacific Corporation (NYSE:UNP) ended the trading session lower by $1.4 or -1.89% from its previous close. Union Pacifics's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Union Pacific Corporation (NYSE:UNP) is a rail transportation company. The company offers long-haul routes from all major West Coast and Gulf Coast ports to eastern gateways as well as connects with Canada's rail systems and serves the major gateways to Mexico.

Union Pacifics's current stock range is defined by calculated support defined at $72.23 and by the resistance level at $76.44, which should be used by traders planning their trades.

Traders wanting to establish a position in Union Pacific stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Union Pacific shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: