UNP Signals BUY On 3 Hour Chart

The Technical Analysis

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Published: September 19, 2021 at 02:55 PM EDT

On September 17, 2021, Union Pacific Corporation stock (UNP) achieved a BUY signal on 1 of our proprietary algorithms indicating near-term upward movement for UNP. Based on historically similar occurrences, the likelihood of this near-term movement is very high. Although this analysis may be technical, it clearly lays out targets for pending price action for UNP. The chart of all potential movement is at the bottom of this article.

Relative Strength Index 3x Extrema

This algorithm follows the common Relative Strength Index with a shorter length. It signals when extreme overbought and oversold conditions occur. This particular algorithm signals rarely but maintains one of the best accuracy levels of all my algorithms.

Relative Strength Index 3x Extrema BUY - UNP 3 Hour Chart Accuracy

This algorithm accurately identifies BUY points for UNP on 3 hour charts 97.143% of the time it signals. A successful signal means the equity price moves up at least 0.75% over the next 40 3 Hour bars. When the algorithm properly performs, success is seen at least 2 trading bars after the signal closing price with a median max gain occurring around 32 trading bars after the signal bar. Successful signals see average reversals of 6.416% from the signal bar closing price and median reversals of 5.132%. The equity reverses greater than two percent 77.143% of the time, greater than five percent 48.571% of the time, and moves beyond ten percent 22.857% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 94.286% of the time. In these instances, the reversals do not obey the signal and begin sizable upward movement for an additional 2 to 14 bars after the triggering signal occurs. This delay can see the equity decline 0.946% to 3.681% beyond the signal closing price of 201.93.

Analysis Based on This Section

Based on the signal closing price of 201.93, the target price is between 206.88 and 220.73 over the next 22 to 38 bars after the signal. However, the equity may first decline toward a price in the range of 194.5 to 200.02 over the first 2 to 14 trading bars.

Summarization of Data

Based on all of the historical datapoints, this analysis has settled on the most likely courses of movement. The red boxes in the image below indicate the likely location of a decline if the signal is not immediately accurate. The green boxes likely hold the extent of signal accuracy. The larger boxes contain all movements aligned with historical data. The smaller box is comprised of the likely half of the median historical data. In this instance, half of the historical data shows the stock may first move down between 194.5 and 200.02. This is the small red box. Likewise, half of the historical target end points finish in the smaller green box. In this instance, the target top is likely between 206.88 and 220.73.

Chart displaying Reversals and Targets for UNP

View this interactive chart on TradingView to see where the stock currently is for this idea.

DISCLOSURE: The algorithms and historical accuracy percentages mentioned in these articles are for reference only. Anything can happen in the future when it comes to market movement. Historical price action is not always indicative of future movement. Just because the signals may have a high degree of accuracy, they can always fail. Traders assume all risk to their assets when investing in short or long-term opportunities.

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