UPS closes higher for the 2nd day in a row
United Parcel Service Inc. (UPS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, UPS finished the month 11.5% higher at 111.18 after gaining $1.70 (1.55%) today, slightly outperforming the S&P 500 (1.54%). Today's close at 111.18 marks the highest recorded closing price since January 29th. Closing above Monday's high at 110.14, United Parcel confirmed its breakout through the previous session high after trading up to $1.88 above it intraday.
Daily Candlestick Chart (UPS as at Jun 30, 2020):
Tuesday's trading range has been $3.40 (3.1%), that's slightly above the last trading month's daily average range of $3.00. 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 lower than usual for UPS. Prices continued to consolidate within a tight trading range between 107.16 and 112.02 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 19th, UPS lost -0.81% on the following trading day.
After trading down to 108.62 earlier during the day, the stock bounced off the key technical support level at 108.82 (S1). The failure to close below the support could increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for United Parcel. Out of 421 times, UPS closed higher 55.34% 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 59.14% with an average market move of 0.57%.