United Parcel Service (UPS) said Monday that it will use Africa-focused e-commerce marketplace Jumia Technologies' (JMIA) distribution network to expand its business in Africa, according to reports. This sent shares of JMIA soaring -- and us to the technicals to take a closer look.
Let's check out the charts and indicators of JMIA.
In the daily bar chart of JMIA, below, we can see that the ADRs have declined significantly over the past 12 months. JMIA has recently firmed above the now rising 50-day moving average line. Prices are still below the declining 200-day moving average.
Trading volume has soared recently on the UPS news but the On-Balance-Volume (OBV) line only shows a little recent improvement. The Moving Average Convergence Divergence (MACD) oscillator has taken four months to get back above the zero line but this bullish signal may not last long.
In the weekly Japanese candlestick chart of JMIA, below, we can see that the shares suffered an even bigger decline than what we could see on the daily bar chart above. Prices are still below the declining 40-week moving average line.
The weekly OBV line shows a slight improvement from early March but the longer trend is negative. The MACD oscillator is still very negative.
In this daily Point and Figure chart of JMIA, below, we can see a potential upside price target of $24.
In this weekly Point and Figure of JMIA, below, we can see the same $24 price target.
Bottom-line strategy: If the charts of JMIA showed a bigger developed base pattern we would be inclined to be a buyer. Unfortunately that is not the case. I think traders can find better opportunities elsewhere.