Let’s see if $UPS and $FDX can Deliver us a Christmas Rally! (November 30, 2020)
UPS FDX
This is Scott with your Chart of the Day. I want to take a look at two shippers. Now as you know, a lot of online shopping is happening now. And so we want to see not only if UPS ( NYSE: UPS ) and FedEx ( NYSE: FDX ) can deliver us our presents to our family; but also perhaps a Christmas rally. Both of these charts are a little different; I personally think UPS ( NYSE: UPS ) looks a little better but I think it’s worth keeping an eye on both of them and I will tell you why.
Here on UPS ( NYSE: UPS ), you can see over the last couple of days we had a nice move above this red line here, which is the 50-day moving average and it came on higher than average volume. We then pulled back into support, pulled back on low volume, and went up today again on higher than average volume. So the buyers are outweighing the sellers here on this stock and that’s what we want to see.
For continuation, I want to see a move above today’s intraday high, maybe have an alert around 171.50. And you want to see this stock push above Friday’s intraday high and today’s intraday high and do it on higher than average volume. This price action has been really nice and tight over the last couple of days. And again, you can see that higher than average volume on the last couple of buying days, as potentially, we could be starting to see a move to the upside running into Christmas.
Now when it comes to FedEx ( NYSE: FDX ); FedEx ( NYSE: FDX ) is a little sloppier. It is still finding support around that 21-day exponential period moving average but you really kind of have to have a looser stop on this stock because it does kind of whip around. It does have about a $20.00 range the last couple of days.
Today we did end up dipping down below the 8-day exponential period moving average. But if I break things down here to a short-term chart you can see that the dip was actually a pretty good buying opportunity as it came off the lows nicely. Also, here’s what I like about FedEx ( NYSE: FDX ); I like that closing volume here. In the last 30 minutes of the day, that’s really when the buyers came in. So I don’t think that this stock is done per se, I do think UPS ( NYSE: UPS ) looks a little better but I think it is worth keeping an eye on both of them.
UPS ( NYSE: UPS ), you want to see a move above 171.50 and I think here on FedEx ( NYSE: FDX ) I would have an alert right above $291.00. And then again, you want to see a move above that level coming on volume. So two shippers to keep an eye on as we ramp up to Christmas; let’s hope these stocks ramp as well.
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