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.
Before you make your next trade, you’ll want to hear this.
MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now…
See The Five Stocks Here
