After my article on FedEx (FDX) last week, I received several emails inquiring about other stocks that may be in the same/similar industry as FedEx. Some traders were simply interested in lesser price stocks than FDX to potentially trade now, while others wanted to watch some of FedEx’s competitors going into their respective upcoming earnings releases.
After doing a little research, I found (3) potential candidates that I thought were worth keeping an eye on both now and/or going into their earnings releases: UPS, EXPD, and UTIW.
Today we will be looking at UPS (United Parcel Service, Inc.). Below is a 1 yr. chart of UPS with my added notations:
UPS has two important price levels to watch for potential trading entries. The $70 level has been and important area of both resistance and support for UPS throughout the last 10 months, while $75 has been a strong level of resistance. UPS is currently trading between these two levels.
The Tale of the Tape: FDX released its 4th quarter earnings report last week and UPS is in the same industry. UPS is a lesser-priced alternative to FDX, but to those interested, UPS also has earnings coming up on July 26th. The $75 and $70 levels are the prices to watch now, in addition to when earnings are released. Depending on your view and market position, a short position could be entered on a rally up to $75 OR on a break below $70, while a long position could be entered on a pullback to $70 OR on a breakout above $75.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT