UNP Stock Swing Trading Journal

UNP Stock Swing Trading Journal

This UNP stock Swing trading journal is a review of a Long Swing Trading 5th wave move on $UNP. I write a great deal of these trading journals, not just because a high proportion of my trades hit our Elliott Wave target zones. But because every single trade acts in slightly different ways. So when it comes time to trade the same Stock again, I have the experience written down to learn from. I hope you find this trading journal educational.

Before the markets opened, on 27 March 2019, I posted a video for a potential Long Swing Trade for $UNP. The original Signals Video includes full analysis & Setup before the markets opened . The Signal came from our Elliott Wave Indicator for the Union Pacific Corporation Stock. UNP is part of the 5 Hot Stocks 2019 Series of videos. Where I am just getting in and out of swing trades for the whole of 2019 to show how part time traders with little time can still make decent profits in the market. To get the current P/L spreadsheet and view everything from the beginning until now, Click >>HERE<<

In the original chart screenshot below we can see that the UNP Stock had found support at our automated probability pullback Green zone on its Elliott Wave 4.

This indicates an 85% probability that the 5th Wave will go on and make a new High in this current Bullish trend.

The Pullback zones are part of our Elliott Wave Indicator Suite. Our Stocks swing trading strategy involves trading the 5th Wave of the Elliott Wave sequence, as it is the highest probability move in a “with trend” trade.

The original chart shown below shows the setup with a Long entry price of $166.20 with Stop at $159.35. Our automated 5th Wave Target zone in Blue was around the $176.

Therefore, giving a Risk to Reward of 1:1.6.

Below this original setup chart, I discuss the entry and trade management for this swing trade that hit our 5th wave target zone.

(Click on Chart to open full size in a new window) 

UNP Stock Trading Journal – What Happened Next!

We didn’t get an entry into this swing trade on UNP until we had a gap up on the 29th March. There was a large increase in bullish, volume on this day. This contributed to another gap an move up on the 30th March, as per the chart below. Over the next week we endured a slow profit taking pull back, which found support at our W5T EMA Cloud. The following week was a steady climb to test the resistance level from the previous all time high at $172.42.  This move was into earnings and it was decided to carry the UNP swing trade over through earnings.  When we look back over the past couple of years, earnings reactions have been predominantly very positive.Therefore giving me confidence of a similar reaction in the current market conditions.

Earnings was announced before the markets opened in the 18th April and as expected were very good.  The markets reacted as expected and the UNP stock price gapped up into our 5th wave target zone. Profits were taken near the top end of our target zone, giving 160% profit x Risk.

If I am in a target zone like this after earnings and going into a long weekend holidays.

My default is to take the trade off and bank the profits.

Using our Elliott Wave Indicator Suite , this type of move on average take 25 days to reach our target and in this case we were a little early!  The chart below shows our automated 5th wave target zone being hit and the price breaking through. Remember, the original Signals Video can be viewed  >>>HERE<<<

(Click on Chart to open full size in a new window)