United Parcel shares snap a three-day string of gains on Wednesday, company buys 125 electric semi-trucks from Tesla

According to a representative from United Parcel Service Inc (UPS), the package delivery company has pre-ordered 125 all-electric semi-trucks from Tesla Inc, as it is seeking to bolster its fleet of alternative-fuel vehicles. This has been the largest public order for the so called “big rig” up to now and is expected to cost about $25 million.

United Parcel shares closed lower for the second time in the past seven trading sessions on Wednesday. The stock went down 0.56% ($0.67) to $118.33, after touching an intraday low at $118.22, or a price level not seen since December 15th ($117.31).

In the week ended on December 17th the shares of the package delivery company lost 1.30% of their market value compared to a week ago, which marked a second consecutive period of decrease. It has also been the steepest drop since the week ended on November 12th.

The stock has extended its loss to 2.57% so far during the current month, following a 3.34% surge in November. The latter has been the third gain out of four months.

For the entire past year, United Parcel shares rose 19.13%. The stock has gained another 3.22% so far in 2017.

Previously, the largest single pre-order for the big rig was made by PepsiCo Inc, which included 100 semi-trucks.

“As with any introductory technology for our fleet, we want to make sure it’s in a position to succeed”, Scott Phillippi, United Parcels senior director for automotive maintenance and engineering for international operations, was quoted as saying by Reuters.

“We have high expectations and are very optimistic that this will be a good product and it will have firm support from Tesla to make it work”, he added.

According to Phillippi, the trucks ordered will enable United Parcel to properly test their capabilities. The UPS representative also said the trucks routes were still being determined, but yet, they would “primarily be in the United States”.

Teslas semi-truck was first revealed in November and is expected to be in production by 2019.

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding United Parcel’s stock price, have a median target of $124.50, with a high estimate of $148.00 and a low estimate of $79.00. The median estimate is a 5.21% surge compared to the closing price of $118.33 on December 20th.

The same media also reported that 18 out of 25 surveyed investment analysts had rated United Parcel’s stock as “Hold”, while 5 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the United Parcel stock are presented as follows:

R1 – $118.54
R2 – $118.74
R3 (Range Resistance – Sell) – $118.95
R4 (Long Breakout) – $119.56
R5 (Breakout Target 1) – $120.28
R6 (Breakout Target 2) – $120.57

S1 – $118.12
S2 – $117.92
S3 (Range Support – Buy) – $117.71
S4 (Short Breakout) – $117.10
S5 (Breakout Target 1) – $116.38
S6 (Breakout Target 2) – $116.09

By using the traditional method of calculation, the weekly levels of importance for United Parcel Service Inc (UPS) are presented as follows:

Central Pivot Point – $117.91
R1 – $119.50
R2 – $120.99
R3 – $122.58
R4 – $124.16

S1 – $116.42
S2 – $114.83
S3 – $113.34
S4 – $111.84