UPS pops to highest close since February 21st
United Parcel Service Inc. (UPS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
UPS ended Thursday at 99.78 gaining $5.28 (5.59%) on low volume, underperforming the S&P 500 (6.24%). Today's close at 99.78 marks the highest recorded closing price since February 21st. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 97.79, the market confirmed its breakout through the prior session high after trading up to $2.23 above it intraday.
Daily Candlestick Chart (UPS as at Mar 26, 2020):
Thursday's trading range has been $6.48 (6.86%), that's slightly above the last trading month's daily average range of $6.22. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for UPS.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a White Candle showed up on March 18th, UPS actually lost -3.03% on the following trading day.
Buyers managed to take out the key technical resistance level at 96.00 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 101.66 (R1).
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 103.80 where further buy stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for United Parcel. Out of 238 times, UPS closed higher 50.84% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.72% with an average market move of 0.43%.