United Parcel Service (UPS) dipped in early trading today but it has since rallied and could close at a two-month high. While this isn't a major upside breakout over a 52-week high, it is the start of a rally.
UPS looks like it will close above the flattening 50-day simple moving average line (see the chart below). I doubt if UPS will close above the flat 200-day moving average line but it may do it tomorrow.
In this daily bar chart of UPS, below, we see improvement in the On-Balance-Volume (OBV) line since early February. Despite prices largely going sideways since early February traders have been more aggressive buyers. In the bottom panel the Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts buy signal and is close to crossing above the zero line for a outright go long signal.
In this weekly chart of UPS, below, we can see that prices are below the declining 40-week moving average line but it won't take much of a rally to close above it. The weekly OBV line is inching slowly higher and the MACD oscillator on this timeframe is narrowing towards a possible cover shorts buy signal.
Bottom line: UPS has work to do to re-establish the long-term advance but prices are improving. Strength above the $120 level may not come until the second half of 2017.