UPS big gap down - up or down UPS gapped down big on earnings day has been going sideways for a few days. UPS has been a massive bull run until May 2021.
As you can see from the chart, 190.75 and 195.60 are the support resistance region. It will be interesting to see which way it breaks out as it has been going sideways within this range.
My bias is to the downside, though we should stay neutral.
But i am tempted to do a bear call spread around the 215 level.
UPS
Sunday Prep 7/25 - $UPS Over $215 she could go straight to ATHNice looking weekly chart here. Feel like over 215 and she goes straight up to ATHs and possibly next leg up. Only concern I have is that it really didn’t spend a lot of time building this new base. If they miss on numbers, I think it can flush down to the 200 level which should probably be a good level for scoops. I don’t think a pullback to that area hurts this stock at all. Think it would be just what the doctor ordered so that the infant base can spend some more time maturing into a teenager before eventually flying the coop. You also have a quarterly pivot and a monthly pivot at 198.8 and 196.78 respectively.
$UPS Short Idea
UPS has been coiling up within a symmetrical triangle after a earnings gap and go which has made it leave a few liquidity gaps below.
Will most likely have trouble finding any buyers up higher and we can see the momentum is fading via bearish MacD crossover on the daily.
Bear case, UPS goes hunting for liquidity at a lower demand zone before making a new high.
- Daniel Betancourt, OptionsSwing Analyst
Industrials needs a breatherXLI, the Sultan, was the ultimate DOW mover. He ruled over everyone including hedge fund managers. Tuesdays action to the upside was great but gave it up at the end of the day. Wed and Thursday continued to the downside. On Friday, the Sultan tapped the 8 day EMA and came back up but closed below previous day high. The issue with XLI is the channels are small. If this low channel is to break, look out below cause I'm thinking of a 3 point move down to 102 as support. Based on HON, FDX, and UPS, Sultan's rule might be done for this coming two weeks.
Be careful of earning calls..!This is a clear example of earning call effect that can not be calculated or predicted by technical analysis!
There was almost no chance to predict this move base on technical analysis, at least as far as I know. Short (Sell) signal was the most probable scenario yesterday! Today yo see a +10% jump!
Anything in the world has its own limitations! Technical analysis is no exception!
on Sunday I published an analysis for my private followers with the title “walking to unknown” and predicted that there could be no relationship between chart and outcome of the earning call.
You can read that using the link below:
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