United Parcel Service has been one of the bullish surprises of 2020 and the coronavirus pandemic. New CEO Carol Tome has shaken up the once-dull shipping company with a major focus on profitability, launching its share to new all-time highs in July.
The last earnings report on October 28 was also strong. However, investors had “bought the rumor” beforehand and “sold the news” after.
That landed UPS back near the bottom of its September range. Two sessions later it made a slightly higher low before starting to bounce.
The price action resulted in a tight ascending triangle. The stock has also managed to claw back above its 50-day simple moving average (SMA) and had a bullish outside candle yesterday.
Given the excitement about its new direction, plus e-commerce tailwinds into the holidays, trend followers may return to UPS after this pullback.
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The last earnings report on October 28 was also strong. However, investors had “bought the rumor” beforehand and “sold the news” after.
That landed UPS back near the bottom of its September range. Two sessions later it made a slightly higher low before starting to bounce.
The price action resulted in a tight ascending triangle. The stock has also managed to claw back above its 50-day simple moving average (SMA) and had a bullish outside candle yesterday.
Given the excitement about its new direction, plus e-commerce tailwinds into the holidays, trend followers may return to UPS after this pullback.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.