Over the past few months, we’ve seen many industrial names take a beating. It doesn’t even matter which company you talk about – the selling has been intense across the board. A few names have shown signs of life recently. One that caught my eye is UPS. Last week, “Big Brown” reported good earnings and provided some nice guidance higher. Investors were rewarded with a nice bounce up. Interestingly, the stock continues to attract money, and even with the sharp drop on Monday, it closed at the highs of the day – a very bullish development.
The chart tells us quite a bit. That rare V shaped pattern is typical in bull markets but rare in bear markets (where we currently find ourselves). UPS is facing resistance ahead at the 200 ma and then at the gap (both noted on the chart). Regardless, relative strength is impressive with the very steep slope, and I think this one will outperform in the months ahead.
UPS (NYSE: UPS) Video Chart Analysis
Take a deeper dive into the chart action on NYSE: UPS and learn how to read the technicals and analysis as Bob Lang marks up our chart of the week.
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United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services in Europe, Asia, Canada and Latin America, the Indian sub-continent, the Middle East, and Africa. It offers three guaranteed time-definite express options, including Express Plus, Express, and Express Saver.