UPS finds buyers around 98.36 for the third day in a row
United Parcel Service Inc. (UPS) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, UPS ended Monday at 99.28 losing $0.43 (-0.43%) on low volume, underperforming the S&P 500 (0.38%). 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 Jun 01, 2020):
Monday's trading range has been $1.32 (1.33%), that's far below the last trading month's daily average range of $2.17. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for UPS.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man.
Prices are trading close to the key technical resistance level at 100.03 (R1). The market found buyers again today around 98.36 for the third trading day in a row after having found demand at 98.35 in the prior session and at 98.33 two days ago. The last time this happened on April 3rd, UPS gained 6.31% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 101.10 where further buy stops might get triggered. Trading close to April's high at 103.75 we could see further upside momentum if potential buy stops at the level get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for United Parcel. Out of 76 times, UPS closed lower 61.84% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 57.89% with an average market move of -0.67%.