Do headlines of a slowing global economy or volatile back-and-forth trade war threats have your attention? It may be time to look at the price charts of logistic stocks Amazon (NASDAQ:AMZN), FedEx (NASDAQ:FDX) and United Parcel Service (NYSE:UPS) as stocks to buy or sell, and navigate the market and deliver more consistent profits to your portfolio.
Today it’s all about weaker global economic data out of Europe and Asia which is spooking investors. Yesterday, and quite literally at that, it was a welcome out-of-left field delay on levying certain Chinese goods by the Trump Administration which drove the market smartly higher.
To say the least, the market’s contrasting reactions are challenging. That’s where AMZN stock, FDX and UPS shares come in as stocks to buy or perhaps sell short. Despite the dizzying and countering headlines from day-to-day, these three logistic plays are setting up nicely to deliver profits to bulls and bears in the weeks ahead.
Logistics Stocks to Buy or Sell: AMZN Stock
Amazon is the first of our three logistics plays. The tech and retail behemoth is far from a straight-up delivery company. Still, as AMZN stock continues to build out its own internal business network to bring its packages straight to your doorstep—it’s a logistics power to be reckoned with.
On the price chart, Amazon’s wherewithal isn’t as convincing. In fact, the technical picture makes this a stock to buy, but one which could quickly turn into favoring a short on AMZN stock.
Currently shares are near a test of trendline, 200-day simple moving average and Fibonacci supports tied to cycle lows from December and March. It’s an area where buying into AMZN stock weakness could prove to be a windfall.
The flip-side for this stock to buy is Amazon shares have formed a double-top variation relative to last year’s high. AMZN stock has also already broken a couple trend-lines over the past couple months. A third failure could get ugly.
The AMZN Stock Trade
For this stock to buy I’d suggest waiting for a confirmation of last week’s doji low and only buy shares above the pattern high. Appreciably, setting a stop-loss beneath the candlestick makes a world of sense and also makes the case for shorting AMZN stock on a breakdown of key support.
FedEx is the next of our logistics stocks to buy or sell. The company recently broke ranks with providing service for Amazon. Down the road that could be very hurtful for FedEx. But in terms of the company’s entire logistics business, right here and right now, its small change. Nevertheless, there’s no denying FDX stock is technically a stock to short.
On the price chart, FDX has continued to paint a disturbingly bearish picture. The weekly view shows a downtrend which began in early 2018 and one which continues to weaken. Most recently, shares have broken below channel support within a bearish flag pattern that’s formed beneath key price and Fibonacci supports.
The FDX Stock Trade
With shares trading slightly below last week’s flag breaking doji candlestick, FDX stock is ready for shorting today. For keeping exposure contained off and on the price chart, I’d suggest a blended stop-loss above $168. That works out to risk of around 7.5% and closing the position if shares of FedEx reverse back above the doji and channel resistance.
United Parcel Service is the last of our logistics stocks to buy or sell. And if the UPS stock chart has any say in the matter, this one is readying to deliver big profits to bullish investors. Back in early 2018 and similar to FDX stock, shares of UPS began to waiver technically. Unlike FedEx, by the spring of this year UPS stock cleared downtrend resistance. And it has only gotten better from there.
Shares of UPS are now consolidating nicely above pattern and Fibonacci resistance. This sets UPS up as a stock to buy in anticipation of a pattern breakout to fresh all-time-highs in the second half of 2019.
The UPS Stock Trade
My recommendation for UPS stock is to wait for confirmation of last week’s doji low continuing to hold support. This can be accomplished by purchasing shares above $118 and slightly above Monday’s initial trade through of the doji.
Alternatively, buying UPS stock through $121.30 and the high of the consolidation is another route bulls can entertain. Either way, using the pattern low to minimize losses and protect one’s portfolio from a stock veering off course makes fiscally and technically good sense.
Investment accounts under Christopher Tyler’s management do not currently own positions in securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits
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