United Parcel Service (UPS) is a large package delivery company based in the United States. It is one of the most recognizable names in the shipping industry. Recently, UPS has seen its stock price move higher, and yesterday, the MACD histogram crossed above zero.
The MACD (Moving Average Convergence/Divergence) indicator is a technical analysis tool used to measure momentum. It is calculated by subtracting the 26-day exponential moving average from the 12-day exponential moving average. When the MACD histogram crosses above zero, it signals a potential uptrend in the stock price.
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When the MACD indicator crosses above the signal line, it is generally a bullish signal that suggests the stock price could move higher. For UPS though, the stock price has tended to decline after MACD crossovers.
This recent crossover marked the 27th time the MACD histogram has crossed above zero since its IPO. In the case of UPS, their price has decreased in the next 30 days 56% of the time, with a median price movement of $-7.52. Their stock price has decreased in the next 90 days 70% of the time, with a median price movement of $-5.78. Investors should take this information and consider external market factors when deciding whether or not to make an investment in UPS.