Price has just hit an established level of support (previously, price has twice bounced from this level). There is also an overlying ascending triangle; price could breakout of this consolidation around the end of the month and continue the prior uptrend. From a broader perspective(hourly chart), UPS has formed an inverse head & shoulders pattern. Although inverse head & shoulders is generally a reversal pattern that indicates the end of a downtrend, it could also signify the continuation of a prior uptrend. PT#1 is at $220 - the upper level of the ascending triangle; if price can breakout past this, the next target is as high as $250. A stop loss should be placed at $205; if this level of support doesn't hold, the trade premise gets invalidated.
From an options perspective, monthly calls (expiring Jan 31) with a strike of $210 could yield profit. A longer term option could be calls expiring in March or April with a strike price of $220. As always, trim as price goes up and use a trailing stop loss depending on the risk that you can tolerate.
From an options perspective, monthly calls (expiring Jan 31) with a strike of $210 could yield profit. A longer term option could be calls expiring in March or April with a strike price of $220. As always, trim as price goes up and use a trailing stop loss depending on the risk that you can tolerate.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.