United Parcel Service : An end to the technical rebound lies ahead

04/17/2020 | 09:25am EST

David Meurisse

short sell Target price hit

Entry price : 102.16$ | Target : 90.2$ | Stop-loss : 108.1$ | Potential : 11.71%

The technical chart pattern of the United Parcel Service stock clearly favors bearish reversal after a technical rebound over the last trading sessions. Investors should open a short trade and target the $ 90.2.

Summary

• In a short-term perspective, the company has interesting fundamentals.

Strengths

• Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.

Weaknesses

• The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
• The stock is close to a major daily resistance at USD 106.76, which should be gotten rid of so as to gain new appreciation potential.
• The company's earnings releases usually do not meet expectations.
• For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
• For the past seven days, analysts have been lowering their EPS expectations for the company.
• For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
• Below the resistance at 105.95 USD, the stock shows a negative configuration when looking looking at the weekly chart.

© MarketScreener.com 2020

	Stocks mentioned in the article	Change	Last		1st jan.
	AMP LIMITED	-0.95%	1.565		0.32%
	AT HOME GROUP INC.	-2.95%	22.73		47.02%
	BYD COMPANY LIMITED	-1.29%	245.8		20.96%
	UNITED PARCEL SERVICE, INC.	-2.80%	158.9		-5.64%

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