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:
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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