UPS Hits New Heights and Gets a Quant Upgrade

Strong charts, indicators and now a quantitative buy recommendation. Here's how to trade it.
Stocks quotes in this article: UPS

United Parcel Service (UPS) has been in a strong uptrend and Wednesday it was upgraded to a buy by TheStreet's Quant Ratings service. Let's check out the charts and indicators and see what the say.  

In the daily bar chart of Action Alerts PLUS holding UPS, below, we can see that prices have been stuck in a sideways trading range since August. Finally prices made a move to the upside and gapped higher the other day. Prices are trading above the rising 50-day moving average line and above the rising 200-day moving average line.

The On-Balance-Volume (OBV) line has been improving from the middle of March and is now close to making a new high for the move up. This would confirm the recent price gains. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line. 

 
 
In this weekly bar chart of UPS, below, we see a bullish picture. Prices have surged to new highs. The slope of the 40-week average line is positive.
 
The weekly OBV line is very close to a new high for the move up. The weekly MACD oscillator is crossing to the upside for an outright go long signal.  
 
 
In this daily Point and Figure chart of UPS, below, we can see the recent run-up in price without a gap as gaps are filled in on Point and Figure charts as if there were trades at those price points. Here a price target of $225 is being projected.  
 
 
In this weekly Point and Figure chart of UPS, below, we can see a price target of $238.  
 
 
 
Bottom-line strategy: UPS has strong charts, indicators and now a quantitative buy recommendation. Traders could probe the long side of UPS closer to $190 if available. Risk to $180. Our next price targets are $225 and $238.

(UPS is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells UPS? Learn more now.)

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TAGS: Investing | Stocks | Technical Analysis | Transportation | Quant Ratings

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