ZTO Express broke above the declining channel

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By :  ,  Financial Analyst

ZTO Express (ZTO) broke above the declining channel

ZTO Express, the Chinese delivery company, announced that 3Q adjusted net income fell 8.2% on year to $178.3 million, missing the estimation, on revenue of $977.8 million, up 26.1%. The stock dropped 5% during the after market trading session.

The company said "During the third quarter, driven by a steady economic recovery, China express delivery industry maintained its strong growth momentum from the previous quarter and achieved a 37.8% parcel volume increase over last year. ZTO grew 51.2% with 4.6 billion parcels and expanded its market share by 1.9 percentage points to 20.8%."

From a technical point of view, the stock broke above the declining channel, indicating a bullish reversal signal. Besides, the bullish cross between 20-day and 50-day moving averages has been identified.

Bullish readers could set the support level at $29.55, while resistance levels would be located at $34.00 and $35.85.

Source: GAIN Capital, TradingView
Related tags: Equities Stocks Earnings

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