It is important not to become predictable in a lot of situations. Instead of leading with a short-term chart of Trifecta Stocks holding United Parcel Service (UPS) and then a longer-term chart, we want to reverse the order this morning.
This long-term chart of UPS, above, shows us a stock with a long rise behind it. UPS has traded sideways for two years. The On-Balance-Volume (OBV) line is neutral on this timeframe. While UPS has been locked in a sideways trading range the past two years, the momentum behind the advances has been waning. The strongest momentum reading was seen in late 2013. The rally in late 2014 to a new price high was actually seen on a lower momentum reading! The rally in 2015 had yet a still lower momentum reading. Weaker and weaker momentum readings after an advance is a sign of a top in my book.
This short-term chart of UPS, above, is neutral and could tilt down or up in the days ahead. UPS was locked in a sideways trading range until January's downside move. Prices recovered in the second half of January, but are stalling in resistance from the bottom half of a $95-$105 range. A close back below $94 would be a short-term signal that the bounce in UPS was failing.