$UPS Short Idea
UPS has been coiling up within a symmetrical triangle after a earnings gap and go which has made it leave a few liquidity gaps below.
Will most likely have trouble finding any buyers up higher and we can see the momentum is fading via bearish MacD crossover on the daily.
Bear case, UPS goes hunting for liquidity at a lower demand zone before making a new high.
- Daniel Betancourt, OptionsSwing Analyst
UPS
Industrials needs a breatherXLI, the Sultan, was the ultimate DOW mover. He ruled over everyone including hedge fund managers. Tuesdays action to the upside was great but gave it up at the end of the day. Wed and Thursday continued to the downside. On Friday, the Sultan tapped the 8 day EMA and came back up but closed below previous day high. The issue with XLI is the channels are small. If this low channel is to break, look out below cause I'm thinking of a 3 point move down to 102 as support. Based on HON, FDX, and UPS, Sultan's rule might be done for this coming two weeks.
Be careful of earning calls..!This is a clear example of earning call effect that can not be calculated or predicted by technical analysis!
There was almost no chance to predict this move base on technical analysis, at least as far as I know. Short (Sell) signal was the most probable scenario yesterday! Today yo see a +10% jump!
Anything in the world has its own limitations! Technical analysis is no exception!
on Sunday I published an analysis for my private followers with the title “walking to unknown” and predicted that there could be no relationship between chart and outcome of the earning call.
You can read that using the link below:
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