United Parcel Service (UPS) is a component of the Dow Jones Transportation Average (DJTA). If more stocks in the DJTA looked like UPS, it would probably break the downtrend that has been in effect since early 2015. UPS looks like it is on the verge of a significant upside breakout.
In this daily chart of UPS, above, we can see prices have moved irregularly higher with higher lows the past 12 months if you ignore January. Prices are above the 50-day and 200-day moving averages with a bullish golden cross of those averages in early April. The On-Balance-Volume (OBV) line has moved up strongly from a January low, telling us buyers of UPS have been more aggressive, with the volume of shares traded being heavier on days when UPS has closed higher. The Moving Average Convergence Divergence (MACD) oscillator has crossed above and below the zero line several times over the past 12 months but is now above that line for another buy signal.
In this weekly chart of UPS, above, we can see a 2½-year trading range bounded by $95 on the downside except for last January. The upside has been capped by $108. Prices are above the now rising 40-week moving average line. The weekly OBV line has broken out to a new high, perhaps leading the price action. The MACD oscillator is in a bullish mode above the zero line.
Bottom line: If UPS can trade up to $110 on increased volume, it should mark a breakout from this long consolidation pattern. The upside targets from this anticipated breakout extend from $125 (the height of the consolidation pattern added to the breakout point) to the low $140s from a Point and Figure projection.