Friday, August 29, 2014

UTi Worldwide Inc. (NASDAQ: UTIW)

UTi Worldwide Inc., through its subsidiaries, provides non-asset-based supply chain services and solutions worldwide. It operates in two segments, Freight Forwarding, and Contract Logistics and Distribution. The Freight Forwarding segment offers airfreight forwarding, ocean freight forwarding, customs brokerage, and other related services. The Contract Logistics and Distribution segment provides contract logistics services, such as receiving, deconsolidation and decontainerization, sorting, put away, consolidation, assembly, cargo loading and unloading, assembly of freight and protective packaging, warehousing services, order management, and customized distribution and inventory management services. The company markets its services through a network of freight forwarding offices and contract logistics and distribution centers to the pharmaceutical, retail, apparel, chemical, automotive, and high technology electronics industries.
Take a look at the 1-year chart of UTi (NASDAQ: UTIW) with my added notations:
1-year chart of UTi (NASDAQ: UTIW)
After its steep February drop, UTIW has been basically range bound. Over that period of time the stock has formed a clear resistance at $10.50 (red). In addition, the stock has also created a level of support at $9 (blue). At some point the stock will have to break one of the two levels that the trading range has created.

The Tale of the Tape: UTIW has clear levels of support ($9) and resistance ($10.50). The possible long positions on the stock would be either on a pullback to $9, or on a breakout above $10.50. The ideal short opportunity would be on a break below $9.
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