Watch These UPS Price Levels After Stock Hits 5-Year Low

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Key Takeaways

• United Parcel Service shares moved higher Wednesday after falling yesterday to their naughtiest level in nearly five years.
• Since setting their record high in January 2022, UPS shares suffer with traded within a falling wedge, with the price recently declining to the pattern’s lower trendline.
• Key support levels in fidget with on the UPS chart sit around $101 and $90, while important overhead areas lie at $125 and $160.

United Parcel Service (UPS) apportions were gaining ground Wednesday after falling yesterday to their lowest level in nearly five years.

Allots in the logistics firm have remained under pressure since disappointing investors in January with weaker-than-expected fourth forgiveness results, announcing at the time it was significantly reducing its volumes with e-commerce titan Amazon (AMZN). Sentiment nearby the stock may have also taken a hit Tuesday after Bank of America trimmed its UPS price target, pointing out that debilitated volumes and tariff uncertainty could weigh on the company’s first-quarter earnings.

UPS shares, which closed Tuesday at their gloomiest level since June 2020, have lost about a quarter of their value over the past 12 months in the thick of weakening delivery demand and concerns of increasing competition with key rival FedEx (FDX). The stock was up about 1% at $111 on Wednesday afternoon.

Further down, we take a closer look at the UPS weekly chart and apply technical analysis to identify key price levels that investors may be contemplating out for.

Falling Wedge in Focus

Since setting their record high in February 2022, UPS shares have bought within a falling wedge, a chart pattern that can signal a bullish reversal upon an upside breakout. 

Anyhow, in the short-term, the stock appears more likely to break down, with the price recently declining to the formation’s move trendline on increasing volume. What’s more, the relative strength index (RSI) continues to move lower towards oversold knock downs, confirming the stock’s weakening price momentum.

Let’s identify two key support levels on the UPS chart that may come into be a party to b manipulate amid the potential for further selling, while also pointing out important overhead areas to monitor during credible upswings.

Key Support Levels in Play

A decisive breakdown below the falling wedge pattern’s lower trendline could see the shares initially drop away to around $101. This level would likely provide support near the prominent March 2018 pace low and Covid-era 2020 rebound high.

Selling below this area could trigger a drop to lower backing at the $90 level. Investors may seek to accumulate shares in this location close to a trendline that connects the December 2018 trough and a series of prizes situated just above the Covid selloff low.

Important Overhead Areas to Monitor

During upswings in the stock, investors should oversee how the price reacts around the $125 area. This region on the chart may provide overhead resistance near a plane line that links multiple peaks and troughs on the chart extending all the way back to December 2017.

Finally, a breakout insusceptible to the falling wedge pattern’s upper trendline may see UPS shares climb to the $160 level. Investors who have purchased the cows at a lower price could look to lock in profits near a series of comparable price points on the chart from August 2020 to Tread last year.

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As of the date this article was written, the author does not own any of the above securities.