Playbook: UPS Stock Support is Piling Up

UPS has formed a cup-and-handle pattern on the charts

CMT, Senior Market Strategist
Feb 15, 2023 at 10:16 AM
facebook X logo linkedin

Below is an excerpt from this yesterday's episode of Schaeffer's Playbook of the Week, featuring Schaeffer's Senior Market Strategist Matthew Timpane. Below, Matthew makes a bullish case for logistics giant United Parcel Service, Inc. (NYSE:UPS).

"UPS, per the chart, is in a cup-and-handle formation right now. It broke out of that short-term downtrend, has now formed a cup, and pulled back into trend. It also put in an inside-weekly candle. The 21- and 200-day moving averages are just below and could be supportive. The stock's volume weighted average price (VWAP) is right near that trend level, too.


There's a lot of things going right for this stock, even with that recent oil pop. UPS typically takes a backseat when oil pops because energy costs are expected to rise. Given that outperformance during a testy period, UPS could be primed to rally back up toward $195. Despite this optimism, there's more skepticism from analysts, with 15 of the 31 brokerages maintaining "hold" or worse ratings on the equity.

Data at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows UPS with a 50-day call/put volume ratio of 1.16 that stands higher than 95% of annual readings.

Options are fairly cheap, with stock's Schaeffer's Volatility Index (SVI) of 23% stands in the 7th percentile of readings from the past year."

Join Schaeffer's Playbook of the Week now and tune in every Monday morning at 8:30 a.m. to get ready for the trading week with me. Click here for more information to get started.

Schaeffer's Playbook of the Week


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI