3 Big Stock Charts for Tuesday: Bank of America Corp (BAC), General Motors Company (GM) and United Parcel Service, Inc. (UPS)

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It feels like the market is heading into earnings season like the underdog in a heavyweight fight. For months, stocks had been in rally mode after the election results, but in March this rally seemed to run out of gas. Now, we head into earnings season checking a number of companies that are walking the fine line between bullish and bearish trends as the market lacks a theme on which to trade.

Today’s three big stock charts look at Bank of America Corp (NYSE:BAC), General Motors Company (NYSE:GM) and United Parcel Service, Inc. (NYSE:UPS) as three stocks that are walking their own perspective “lines” as we head into earnings season.

Bank of America Corp (BAC)

Bank of America Corp (BAC)
Source: Chart courtesy of StockCharts.com

Bank of America is not one of the substantial number of financials that will offer their earnings results Tuesday morning. Instead, BAC provides its earnings next Tuesday. The company has been teetering on breaking through a significant level for weeks.

Since mid-March, Bank of America has been bouncing across the $23-mark, with buyers coming in to buoy the stock almost every time it bobbed below that price. Now, there is a combination of technicals that will add to the pressure BAC is facing.

Namely, the 20- and 50-day. The former just crossed below the 50-day in a short-term bearish trading signal. The 20-day is now almost in place, at a price of $23.71, to start applying daily pressure to Bank of America stock.

At the same time, the familiar bearish rollover of the 50-day appears imminent, which will add selling pressure as BAC tests $23 again.

Traders should prepare for this price to give way to lower trading on Bank of America, setting a new target of $22 and then $21 for the banking giant’s share price.

General Motors Company (GM)

General Motors Company (GM)
Source: Chart courtesy of StockCharts.com

It was big news yesterday when Tesla Inc (NASDAQ:TSLA) took the title of most valuable U.S. automobile maker just a week after surpassing Ford Motor Company (NYSE:F) in value. But when you look at the price chart of Ford and GM it shouldn’t be a big surprise.

General Motors shares have been lagging the market since topping out on March 6. Since then, the shares have dropped 12% in value, while Telsa has increased more than 25%. That makes the shift in power more easy to understand.

The decline in GM shares now has the company trading at critical support from the 200-day moving average, which is priced just under yesterday’s close.

In addition, $34 has long been “chart support” for General Motors shares as traders have supported this round number (indicated by the green horizontal line).

This time around, the pressure is on as GM heads into its earnings report towards the end of the month with shares in a clear intermediate-term bearish trend. A break of $34 will put new selling pressure on the stock targeting a move to $32 in short order.

United Parcel Service, Inc. (UPS)

United Parcel Service, Inc. (UPS)
Source: Chart courtesy of StockCharts.com

Transport stocks were taking the reins on the market as the economy was showing signs of strength. Now, not so much, as questions over interest rates and how fast the economy is growing now have the transports lagging again.

UPS stock is down nearly 10% for the year, converse to the S&P 500. United Parcel Service’s Q4 earnings report was the big culprit, pulling a 10% decline in two days after the announcement.  Nonetheless, the technical patterns are concerning.

UPS shares are following their 50-day moving average as if they were on a rail. The technical trendline is in bearish mode as it declines at a relatively fast pace.

Since January’s earnings report,United Parcel Service stock has found chart support at $105, with which the 50-day is now on a crash course to cross below within the next week or so.

This pattern puts UPS shares in a must-win, or at least must start to win, on the next test of $105. A move below this will bring further pressure from the 50-day and target a lower price, easily 5% lower at $100 initially.

As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities. 


Article printed from InvestorPlace Media, https://investorplace.com/2017/04/3-big-stock-charts-for-tuesday-bank-of-america-corp-bac-general-motors-company-gm-and-united-parcel-service-inc-ups/.

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