2 Blue-Chip Delivery Stocks Gap Up On Earnings

United Parcel Service Inc. UPS and FedEx Corp. FDX are two stocks that gapped higher Tuesday.

UPS is moving up after the company reported better-than-expected EPS and sales results, while FedEx is trading higher as a sympathy.

Below is a technical look at the charts.

UPS Daily Chart Analysis

• Starting last May and ending in August, UPS stock made a strong bullish run in 2020. The stock gapped up Tuesday past a potential area of resistance.
• The stock is trading above both the 50-day moving average (green) as well as the 200-day moving average (blue), indicating sentiment in the stock has been bullish recently.
• These moving averages may both hold as support levels in the future.

Key Levels To Watch

• The stock held $180 as resistance in the past before gapping above the level Tuesday.
• This $180 was a resistance as the stock struggled to cross above this area. Now the stock needs to hold this area as support.
• If the $180 level is able to hold as support, and the price can consolidate above this level, then the price could see higher moves.
• If the stock fails to hold $180 as support, it would have room to fall to $156 before potentially finding support again, as $156 was previously able to hold as support.

FedEx Daily Chart Analysis

• FedEx stock looks to be nearing the end of what technical traders may call an ascending triangle pattern.
• The stock is trading above both the 50-day moving average (green) as well as the 200-day moving average (blue), indicating sentiment in the stock has been bullish recently.
• These moving averages may both hold as support levels in the future.

Key Levels To Watch

• The stock has been building higher lows throughout the year into an ascending triangle pattern.
• The ascending triangle shows a flat top resistance near the $300 level as this is a price level where sellers have always previously been able to push the price back down.
• A break above flat top resistance with consolidation gives the stock a chance to push higher.
• A break below the higher lows may cause the overall trend to change.

FedEx is the top holding and UPS is a top 10 holding in the iShares Transportation Average ETF IYT