UPS Close to Resistance

Published on Friday, 03 September 2010 07:32 Written by Christopher Lynn

New York, September 3rd (TradersHuddle.com) - Shares of United Parcel Service, Inc. (NYSE:UPS) are trading very close to calculated resistance at $67.72 with the current price action closing at just $67.12 placing the stock near levels that make it difficult to buy.

United Parcel Service, Inc. (NYSE:UPS) delivers packages and documents throughout the United States and in other countries and territories. The Company also provides global supply chain services and less-than-truckload transportation, primarily in the U.S. UPS's business consists of integrated air and ground pick-up and delivery network.

UPS' current stock range is defined by current calculated support defined at $62.61 and by the resistance level at $67.72, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for UPS, as the stock is well above support, however, as the stock pulls back towards $62.61 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $67.72 then traders will get an opportunity to enter UPS stock by establishing a position as the stock moves to a higher range.