UPS closes below its opening price unable to hold early session gains
United Parcel Service Inc. (UPS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
UPS finished the week 6.25% higher at 96.72 after losing $0.59 (-0.61%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $0.78 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (UPS as at May 22, 2020):
Friday's trading range has been $1.87 (1.93%), that's below the last trading month's daily average range of $2.38. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UPS. Prices continued to consolidate within a tight trading range between 95.70 and 98.46 where it has been caught now for the last three trading days.
Five candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern, one bearish pattern, the Northern Doji and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Rickshaw-Man showed up on February 6th, UPS lost -3.18% on the following trading day.
After trading as low as 95.70 during the day, the share found support at the 50-day moving average at 95.80.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 98.46 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for United Parcel. Out of 50 times, UPS closed higher 56.00% 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 60.00% with an average market move of 0.67%.