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Swing Trade Idea (UPS) – June 13, 2022

Market Outlook: The major equity indices experienced a strong bearish day on Friday after higher than expected CPI data indicated that inflation has not yet peaked, as previously assumed. This is extremely concerning for equities as it gives the green light to the Fed to pursue a more aggressive rate hike policy which will be a major headwind for equities, especially growth names. Gold reacted strongly to the inflation news and moved higher with strong momentum and oil continues to grind higher. Our outlook has shifted more bearish with the previous swing lows in the SPY and QQQ in danger of being breached to form a new lower low.

UPS Bullish Trade: Our bearish trade idea today is United Parcel Service Inc (UPS). UPS is experiencing a strong bearish trend with price forming lower highs and lower lows. After breaking below $180 major support, price reversed higher and ran into resistance at $190 where it got rejected and is declining lower with strong bearish momentum. Both 1M and 6M trends are now bearish and with a relative strength score of 5 (out of 10), UPS is a neutral stock that will likely move lower. The next area of support is at $155.