UPS Momentum Picks Up After Bolstering Worldwide Delivery Platform

New York, March 19th (TradersHuddle.com) – UPS stock price surged on Monday after the company bolstered its worldwide delivery platform. United Parcel Service Inc. UPS announced Monday it agreed to buy TNT Express NV for $6.77 billion in a deal supported by TNT's boards. UPS's cash offer of 9.5 pounds or ($12.51) per share for TNT comes a month after TNT management turned down a 9 Pound per share offer. UPS has experienced a solid rally in 2012, moving up nearly 8%, with the majority of the move coming in March. Transportation companies have lagged the major averages, but seem to have experienced a revival in the past week. Support on the large cap transportation company is seen near the 20-day moving average near $77, and then the 50-day moving average near $76. A break of the recent highs at $79 would lead to a test of weekly resistance made in 2006 near $80. The momentum on the stock price is picking up with the index on the MACD moving up toward .40. The MACD created a buy signal in mid-March, where the spread 9the 12-day moving average minus the 26-day moving average) crossed above the 9-day moving average of the spread. Last week the 5-day moving average crossed above the 20-day moving average, which is generally a sign that a short term moving average is in place. The RSI is printing near 64, which is the high end of the neutral range. During the past 6 months, the RSI has remained in neutral territory. Volume on the large cap shipping company has moved higher during the past week, with a number of trading days showing volume above the 50-day moving average of volume. Look for a close above $80 to confirm further upside price action in UPS. Related Articles Starbucks Makes New Record Highs Research in Motion Higher With High Volume Industrial Intelligence: What's Driving XLI This Year?