Stock of the Day: UPS

Today’s stock of the day is UPS, which is maintaining a healthy technical structure on the H4 chart.

The broader context is a clear uptrend supported by a rising red trendline. This line has already been tested several times in the past, and each time the market reacted with a strong continuation to the upside. The trendline therefore remains a key dynamic support.

Looking closer at the price action within this trend, we can identify three previous bearish corrections marked with green lines. Each of those corrections ended with a breakout to the upside, confirming the strength of the prevailing trend.

Currently, UPS is undergoing the fourth corrective phase. This correction is taking the shape of a flag pattern. Price has already bounced from the lower boundary of the flag, which shows that buyers are defending the structure.

However, there is no confirmed buy signal yet. The bullish signal would be triggered only if price breaks above the upper boundary of the flag. Such a breakout would confirm continuation of the trend and generate a proper buy signal.

The alternative scenario must also be considered. If price breaks below the lower boundary of the flag and simultaneously breaks the red uptrend line, that would invalidate the bullish structure and generate a sell signal.

For now, the trend remains positive, but confirmation is still needed. The next breakout from the flag formation will determine the direction of the next significant move.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-ups-3