Breakout Trade in UNP

[Steven Place]

UNP is putting in a potential inverse head and shoulders bottoming pattern on a 30 min chart. The key level of resistance is right at 158 and if it can get above that, then the 52 week high will most likely act as a magnet.

I don’t think it’s worthwhile to anticipate the breakout here as it did finish at the lows, so just set an alert at 157.25 to get ready for the break.

If it gets and holds above 158, then buy the October 160 call. Initial target is just under 52 week highs at 163– if we get there, consider spreading your calls by selling the 165 call against your long call, which converts it into a bull call spread.

 

[Steven Place]

Trade still isn’t there yet, waiting for a move above 158. That pattern has changed a bit to more of an inverse head and shoulders pattern.

[Author]

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