UPS United Parcel Service Weekly Chart Downward Channel H&S Gaps

UPS looking weak, the pink H&S is in play with a neck line at 68 that targets 59. We watched the top form at the beginning of the year, the rising blue wedge, overbot conditions and negative divergence shown with the blue lines were textbook TA, and price has been lower ever since the February spank down. Note the green circles for the indicators, all lower from last summer to this summer but price is higher, this is negative for the chart. Watch the RSI and stochastics 50% levels to gauge price, RSI is below favoring bears, stochastics hanging on at 52 to help bulls. The green circles want price to come down to the 55-60 area, so does the H&S. There are some juicy gaps below as well. The downward channel since February shows lower lows and lower highs.

UPS 20 and 50 MA cross is one of Keystone's secular signals. In July 2009, you see the 20 move above the 50 signaling the all clear for bulls and bullish broad markets. The party continues but, by the looks of this sad chart, and the fact that now the 20 and 50 MA's are only a point and a half away from each other caution is warranted. If the 20 MA moves down thru the 50 MA that tells you the markets have fallen back into a secular bear market. This ushers in long term bearish markets.

Last summer the markets were going over the falls, but Chairman Bernanke saved the day with QE2. QE3 will be announced this Fall more than likely. The 20 MA and 50 MA cross is a big deal, keep on watching. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.