All Aboard:
The rails have been perking up and for whatever reason you want to assign to it does not matter. PRICE is firming in the group and below is the daily chart of UNP. Truth be told it is not acting as well as NSC, but UNP did break ABOVE a bearish head and shoulders formation and we know from FALSE moves come fast ones in the opposite direction. Its MONTHLY chart sports a cup with handle pattern and since 2022 has been essentially digesting the big former uptrend that began in 2016. Sure tariffs are playing a role as seen on this performance chart contrasting NSC CNI and CP, as our neighbor to the north’s names are floundering. Periphery plays will be lifted along with the pure play rails, and continuing to look at small and mid-cap plays shows us the daily chart here of RAIL. It is dealing with round number theory and I would be interested here with a CLOSE above 10.25. Monday’s bullish hammer was a good start. Notice it is holding up near the 40 RSI level where leaders will not trade below. TRN has formed a bull flag and a move above 38.25 should get one long. That would negate Monday’s bearish gravestone doji candle and avoid a derailment (a weak stab at humor).