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UNP — 20-Day Breakout with Volume + Bull Flag / Pennant Breakout
Status: Invalidated
Scanner score: 100.0/100
Why this was flagged
UNP was identified as a bullish technical setup based on the 20-Day Breakout with Volume + Bull Flag / Pennant Breakout pattern. The scanner found a score of 100.0/100 using trend alignment, momentum, price action, volume, and risk-management rules. Monitor update: Latest daily-chart analysis no longer reports a bullish long setup.
Trade framework
Position-sizing example
These examples use the distance between the reference entry and stop-loss. They do not account for commissions, slippage, taxes, overnight gaps, or your personal account size.
Exit plan
- Stop-loss: Exit if the stop-loss is reached. Do not move the stop farther away to avoid taking the planned loss.
- Target 1: Consider taking partial profit when Target 1 is reached and reducing risk on the remaining shares.
- Target 2 or trailing exit: Consider closing the remaining position at Target 2, or use a disciplined trailing stop only if the trend remains strong.
- Time exit: Reassess or close a trade that fails to progress within the suggested holding window.
Technical chart
Daily closing price with moving averages and planned trade levels. This chart is a screening aid, not a guarantee of future results.
$1,000 educational outcome examples
These examples use a $1,000 position and fractional shares at the midpoint of the entry zone. Actual results can differ because of market gaps, fills, spreads, commissions, taxes, slippage, and changing conditions.
Easy explanation for new investors
The scanner found Union Pacific Corp (UNP) using a special pattern. The price broke above its highest point from the last 20 days. This happened while many people were trading the stock, which is shown by high volume. Volume means the number of shares being traded. The stock also moved out of a "bull flag." A bull flag is when a price moves up quickly and then stays in a tight range before moving up again. The scanner gave this setup a perfect score of 100 out of 100 because the price is above its long-term average lines.
What the price plan means
The entry zone is between $304.11 and $305.72. If you use this plan, the first goal is $323.46, and the second goal is $333.13. To manage risk, there is a stop-loss at $294.43. A stop-loss is a price set to exit a trade if things go wrong. The reward-to-risk ratio is 2, which means the potential gain is twice as large as the potential loss.
What could make the idea fail
The stock's momentum might slow down. If the price drops below $294.43, the technical setup is no longer valid.
Important reminder
This information is for educational purposes only. It does not tell you what to do with your money.
Recent news context
This automated review is separate from the technical score. It summarizes recent related articles and does not predict price movement.
Overall context: Caution (High confidence)
Union Pacific Corp (UNP) reported strong Q2 2026 results, with revenue of $6.86 billion and diluted EPS of $3.36, both exceeding prior year figures. The company reached a new 52-week high following these results and is seeing a sharp rebound in intermodal volume. Additionally, Union Pacific has secured support from Canadian National for its proposed $85 billion acquisition of Norfolk Southern. However, despite strong momentum and profitability, some analysts suggest the stock is overvalued by approximately 22.7% relative to its intrinsic value. Furthermore, insiders have sold $8.8 million in stock, and the company's current P/E ratio is significantly above its historical median.
Potentially supportive context
- Reported Q2 2026 revenue of $6.86 billion and EPS of $3.36, both increasing year-over-year.
- Achieved new 52-week highs following better-than-expected quarterly earnings.
- Experiencing a sharp rebound in intermodal volume and improved freight car velocity.
Risks and caution items
- GF Value indicates the stock may be overvalued by 22.7% compared to its intrinsic value.
- Insiders have sold $8.8 million in stock.
- Current P/E ratio of 25.1x is significantly above the historical median.
- Proposed $85 billion acquisition of Norfolk Southern faces regulatory review by the U.S. Surface Transportation Board.
Latest reviewed article: Jul 23, 2026 9:47 pm
Recent related articles
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Union Pacific Corp (UNP) shares rose 4.0% to $304.33, but GuruFocus's GF Value indicates the stock is overvalued by 22.7% compared to its intrinsic value of $248.07. Despite a strong GF Score of 91/100, driven by excellent profitability and momentum, the stock's…
Union Pacific Corp. (UNP) stock rose 4.02% on Thursday, closing at $304.33, despite an overall downturn in the market with the S&P 500 and Dow Jones Industrial Average both falling. This gain followed a three-day losing streak for the company's shares. However,…
CSX Corp (CSX) stock closed up 6.24% on July 23rd, driven by strong second-quarter financial results that exceeded analyst expectations for revenue and profitability. Key factors included improved freight volumes, efficient cost-containment measures, and positive updated guidance for the fiscal year. Brokerage…
Union Pacific Corp (UNP) reported strong second-quarter 2026 results with revenue of $6.86 billion and diluted EPS of $3.36, both increasing from the prior year. This growth was driven by a 12% rise in freight revenue, improved operational metrics including a 5%…
Union Pacific (UNP) is experiencing a sharp rebound in its intermodal volume this year. The company implemented precision scheduled railroading (PSR) in late 2018, a strategy that has proved effective in improving network efficiency and increasing incremental margins. This report is an…
Union Pacific has secured Canadian National's support for its proposed $85 billion acquisition of Norfolk Southern railroad, aiming to create the first transcontinental railroad in the U.S. This deal, while viewed by UP CEO Jim Vena as "compelling," has faced opposition from…
Shares of CSX Corp. (CSX), Union Pacific Corp. (UNP), and Norfolk Southern Corp. (NSC) reached new 52-week highs following better-than-expected quarterly earnings reports. CSX saw its price target raised by brokerages after robust Q2 results, while Union Pacific increased its 2026 EPS…
Important: Some returned articles may describe competitors, industry conditions, or related companies. Open the source before relying on an article.
Scanner confirmations
- Price is above the 20-, 50-, and 200-day moving averages, with bullish moving-average alignment.
- Current volume is at least 1.25x the 20-day average volume.
- Price closed above the prior 20-day high with above-average volume.
- Price broke above a tight 5-day consolidation after a meaningful 10-day advance, with volume confirmation.