The shares of United Parcel Service, the world’s largest package delivery company, or simply UPS in the New York Stock Exchange reversed for the better following yesterday’s price action. As you can see from the chart, the stock has gapped up and in the process also broke out from an inverted head and shoulders formation. At the same time, it likewise cut through both the resistances at the 50-day and 200-day moving averages. At present, the the stock is sitting just above 63.00 support. It could range for a while between this level and 65.00 before moving higher. A break above 65.00 could send it up all the way to 69.00 or at its previous high just above 70.00. On the flip side, a move below the neckline could pull its price back to the bottom of the gap.
What caused the UPS’ rise was the company’s better-than-expected second quarter earnings. During the 2nd leg of this year, the company reported a 71% jump in its earnings from a year earlier. Revenue likewise rose by 13% during the period. What contributed to this upside were the 7% increase in its US domestic package business, 23% expansion in international packages, and 10 leap in its supply chain and freight operations. And as the global markets stabilize, the global trade business would only get better which would in turn be beneficial for the company.