This Portfolio Holding Is Starting Up Its Engines, but Giving Mixed Signals

The company reports second earnings on July 26.
Stocks quotes in this article: UPS

With earnings just around the corner, one Action Alerts PLUS holding is barreling forward with some mixed technical signals.

The weekly chart from TrendSpider, below, for United Parcel Service (UPS) , shows lower volume on this recent "pull up" which can be portrayed as a bear flag.

The indicators are also bearish, with the money flow showing lower highs and the Relative Strength Index (RSI) bending downward. The range drawn in was broken sharply in April and now UPS is trying to find a range.

The daily chart (chaikin), below, shows some higher lows with good money flow and an overbought RSI reading.

A move up to $190 would be constructive here and set up a nice move towards the downtrend line, currently at 210 or so.

This analysis was originally sent to subscribers of TheStreet's Action Alerts PLUS, for which Bob Lang is co-portfolio manager. Want to be alerted before AAP buys or sells stocks? Learn more now. )

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TAGS: Investing | Stocks | Technical Analysis | Trading | U.S. Equity

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