United Parcel Service
U.S. package deliveries rose 10.2% year-over-year from $4.21 billion to $4.82 billion. International deliveries increased by 30%. UPS earnings-per-share came in at $3.06 per share versus the estimate of $2.75 per share.
The Daily Chart for UPS
Shares of UPS has been above a golden cross for the last 52 weeks. This occurs when the 50-day simple moving average rises above the 200-day simple moving average. Note how the 50-day SMA was a magnet between November 6, 2020 and March 25, 2021.
The price gap higher on April 27 was caused by a positive reaction to earnings. This led to the all-time intraday high of $219.59 set on May 10. The 50-day SMA became a magnet again between June 9 and July 26. Then came the gap lower on July 27 on the negative reaction to the second quarter earnings report.
The highest horizontal line is this month’s pivot at $211.04. The close below this level on July 26 provided a warning. The price gap lower was below weekly and quarterly pivots at $202.40 and $199.49. The 200-day SMA is rising at $180.35 (in green). The annual and semiannual value levels are the horizontal lines at $170.19 and $153.39.
The Weekly Chart for UPS
The weekly chart for UPS is negative with the stock below its five-week modified moving average at $205.33. It’s well above its 200-week simple moving average or reversion to the mean at $128.35. The 12x3x3 weekly slow stochastic reading is declining at 70.25.
Note that at the all-time high, the stochastic reading was above 90.00 putting the stock in an inflating parabolic bubble formation.
Trading Strategy: Buy UPS on weakness to its 200-day SMA at $180.35 and add to positions at the annual and semiannual value levels at $170.19 and $153.39. Reduce holdings on strength to the monthly pivot at $211.04.