Bulls Are Still Boarding This Train

Given the amount of pressure on the markets recently it's not easy to find stocks that are performing well. AAP portfolio holding Union Pacific (UNP)  , however, is one of those.

This stock has been a stalwart in the portfolio since a year ago. The portfolio's first buy was on March 9, 2021 and since then the stock is up a a solid 22% (includes more buying later in 2021, too).

UNP's charts, below, show a nice bullish pattern of higher highs, higher lows. Here, we decided to view UNP from two different timeframes -- daily and weekly. They are similar looking but also reflect the strength on different indicators.

The blue Chaikin chart is the daily, which shows persistent upside with higher highs, higher lows after a breakout from the August highs back in mid-October. Holding this level and surging higher is indicative of a bullish trend. Note the very sold relative strength and the overbought condition. The industry and trends are strong, so it's good to find a stock making new highs in this environment.

The weekly chart, below, was made using Trendspider. It also shows a pattern of higher lows and higher highs. When we see two timeframes in sync that is a powerful chart characteristic. Note on the weekly, a Moving Average Convergence Divergence (MACD) bullish crossover, and the Relative Strength Index (RSI) remains elevated here, too.

We could see UNP slowly making a run towards $300. We like what we see for UNP on both timeframes.

https://share.trendspider.com/ chart/UNP/4669pdafjt

Action Alerts PLUS is long UNP.