Union Pacific Closing in to Resistance

Published on Friday, 18 June 2010 08:12 Written by TradersHuddle Staff

New York, June 18th (TradersHuddle.com) - Shares of Union Pacific Corporation (NYSE:UNP) are trading very close to calculated resistance at $76.49 with the current price action closing at just $76.22 placing the stock near levels that make it difficult to buy.

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 current calculated support defined at $67.98 and by the resistance level at $76.49, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Union Pacific, as the stock is well above support, however, as the stock pulls back towards $67.98 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $76.49 then traders will get an opportunity to enter Union Pacific stock by establishing a position as the stock moves to a higher range.