Breakdown for United Parcel Service (UPS) in the Charts?

NYSE: UPS | United Parcel Service, Inc.  News, Ratings, and Charts

UPS – United Parcel Service Inc. (UPS) is approaching a key support level. If the stock breaks this level, a breakdown could occur. Read more to learn how to profit from this trade.

While many stocks are trending higher in 2021, United Parcel Service Inc. (UPS) is trading lower and is approaching a key support level.  If this level is broken, a breakdown could ensue.

UPS is the world’s largest parcel delivery company. It manages a massive fleet of more than 500 planes and 100,000 vehicles, along with many hundreds of sorting facilities, to deliver an average of about 22 million packages per day to residences and businesses across the globe.

UPS is benefiting from a meaningful increase in home deliveries due to the coronavirus pandemic, as the need for door-to-door delivery of essential products has risen. Even with the rollout of the vaccine, e-commerce demand is likely to be strong for some time. UPS should also benefit from the distribution of the coronavirus vaccines.

As of the end of the last quarter, UPS had $9.2 billion in cash, slightly up from the previous quarter. Long-term debt was $25.8 billion, but short-term debt was only $2.4 billion. The company also has a solid return on invested capital of 15%.

UPS has a stable history of sales growth, up an average of 6.6% over the past five years. Earnings are expected to grow 35.7% next quarter, and 10.2% next year. Its stock has a trailing P/E of 30.15 and a forward P/E of 18.21.

While UPS stock is up 39% over the past year, it has shown bearish momentum over the near-term. This has led to a “Neutral” rating in our POWR Ratings system, and is reflected in the chart below.

Take a look at the 1-year chart of UPS below with added notations:

  Chart of UPS provided by TradingView

UPS has formed a major level of support at $155 (green) over the past several months. The stock has rallied off that mark a few times already, and now it seems to be falling back down to the $155 level again. Another bounce could follow, but if the support were to break, lower prices should follow for UPS.

If the stock were to break below the $155 support level, a short position could be entered with the expectation of a breakdown.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT

@cmtstockcoach


UPS shares rose $0.48 (+0.30%) in premarket trading Thursday. Year-to-date, UPS has declined -4.80%, versus a 2.74% rise in the benchmark S&P 500 index during the same period.


About the Author: christian


Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
UPSGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Bull Run or Bull S#*t?

The S&P 500 (SPY) has impressively broken out above 4,000. However, it seems that ONLY large caps are moving higher while smaller stocks are actually in the red. Why is this? And what does it mean for the future health of this bull market? Read on below for the answers…

:  |  News, Ratings, and Charts

3 Shipping Stocks Rated Strong Buy

Shipping stocks are buoyant as the global economy begins its rebound from the economic effects of the COVID-19 pandemic. We think ZIM Integrated Shipping Services (ZIM), Matson (MATX) and Global Ship Lease (GSL) are three companies that are well positioned to benefit from a sector resurgence and, as such, warrant a closer look now by investors. Let’s evaluate these names more closely.

:  |  News, Ratings, and Charts

Top 10 Growth Stocks

Let me prove beyond a shadow of a doubt that we are in the midst of a stock market bubble. Even better, let me explain why stocks (SPY) will rise for another 12-24 months so you can ride it higher and then parachute out at the peak. And just for good measure I will share my top 10 stocks for today’s market. Read on below for more...

:  |  News, Ratings, and Charts

Avoid These 3 Cathie Wood Stocks in April

Cathie Wood’s contrarian investment strategy may not be ideal for short-term, risk-averse investors with limited funds because most of Wood’s bets require a considerable holding period. So, we think Wood favorites Shopify (SHOP), Spotify (SPOT), and Zillow (Z), which could witness a pullback in the near term, are best avoided now.

:  |  News, Ratings, and Charts

Top 10 Growth Stocks

Let me prove beyond a shadow of a doubt that we are in the midst of a stock market bubble. Even better, let me explain why stocks (SPY) will rise for another 12-24 months so you can ride it higher and then parachute out at the peak. And just for good measure I will share my top 10 stocks for today’s market. Read on below for more...

Read More Stories

More United Parcel Service, Inc. (UPS) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All UPS News