The charts of United Parcel Service (UPS) got our attention Friday morning. The shares have been stalled in a sideways trading range since early August and dips into the $160 ot $155 area have found buying. Despite this support under the market the charts have weakened.
In this daily bar chart of UPS, below, we can see a weakening picture. Prices are now trading below the declining 50-day moving average line. The 200-day moving average line is still rising and intersects around $140.
The trading volume has been neutral for months and the On-Balance-Volume (OBV) line has been drifting slightly lower since August. The Moving Average Convergence Divergence (MACD) oscillator has been weak since the middle of August and has moved below the zero line this month for an outright sell signal.