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Gains Can Be Made In UPS

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Since the December 2013 high of $105.08, active day traders have been hoping for UPS  stock to take a major role in the stock market’s longest bull run in recent memory. And for the most part, their hopes have been realized with the culmination of the December 2016 $120.16 all-time high. Unfortunately, this gradual rise in stock price has met its end. UPS stock has plummeted ($14.08) since December 2016, and is poised to continue in a congestion/consolidation phase for at least the next  months.
Recommendation:So how and where should short-term day traders seek to take advantage of this UPS pullback? The answers lies in Support & Resistance.Short-Term Support is at $104.73 while Short-Term Resistance lies at $107.51; look for breakouts at these levels to initiate a Buy or Sell Strategy. For those day traders going Long, Buy when Resistance levels exceed the $107.51 price with an upside target of the next Short-Term Resistance level of $109.00.For those Shorting UPS, sell at $104.73, with a downside target of $102.70. These profit targets are given even more credibility with the $109.00 upside target matching the 38.2% Fibonacci retracement of the major Long-Term December 2016 resistance high, while the downside $102.70 target shows a 123% Fibonacci extension of the near term February 2017 high.
The bottom line: Although UPS is stuck in a congestion/consolidation period, don’t let that stop you from squeezing out significant profit potential.

 

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