United Parcel Service Inc. (NYSE: UPS) and FedEx Corp. (NYSE: FDX) are two stocks that gapped higher Tuesday.
UPS is moving up after the company reported better-than-expected EPS and sales results, while FedEx is trading higher as a sympathy.
Below is a technical look at the charts.
UPS Daily Chart Analysis
- Starting last May and ending in August, UPS stock made a strong bullish run in 2020. The stock gapped up Tuesday past a potential area of resistance.
- The stock is trading above both the 50-day moving average (green) as well as the 200-day moving average (blue), indicating sentiment in the stock has been bullish recently.
- These moving averages may both hold as support levels in the future.
Key Levels To Watch
- The stock held $180 as resistance in the past before gapping above the level Tuesday.
- This $180 was a resistance as the stock struggled to cross above this area. Now the stock needs to hold this area as support.
- If the $180 level is able to hold as support, and the price can consolidate above this level, then the price could see higher moves.
- If the stock fails to hold $180 as support, it would have room to fall to $156 before potentially finding support again, as $156 was previously able to hold as support.
FedEx Daily Chart Analysis
- FedEx stock looks to be nearing the end of what technical traders may call an ascending triangle pattern.
- The stock is trading above both the 50-day moving average (green) as well as the 200-day moving average (blue), indicating sentiment in the stock has been bullish recently.
- These moving averages may both hold as support levels in the future.
Key Levels To Watch
- The stock has been building higher lows throughout the year into an ascending triangle pattern.
- The ascending triangle shows a flat top resistance near the $300 level as this is a price level where sellers have always previously been able to push the price back down.
- A break above flat top resistance with consolidation gives the stock a chance to push higher.
- A break below the higher lows may cause the overall trend to change.
FedEx is the top holding and UPS is a top 10 holding in the iShares Transportation Average ETF (NYSE: IYT)
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