United Parcel Service (UPS) is seeing its shares take a hit here on Tuesday after the package delivery giant cut its full-year revenue and profit margin guidance due in part to the expected impact of its tentative, five-year labor contract with the Teamsters union. Let's check the charts and indicators of UPS to see the performance its stock might deliver from here.
In this daily bar chart of UPS, below, I can see that prices have struggled the past 12 months. UPS stock price has crisscrossed the popular moving average lines several times. The On-Balance-Volume (OBV) has been drifting lower the past year and tells me that sellers of UPS have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is pointed down but still above the zero line. A new outright sell signal could happen soon.
In this weekly Japanese candlestick chart of UPS, below, I see a mixed picture. Prices have been in a longer-term downward path. Lower highs and lower lows got started in early 2022. Prices have not made a new low for the move down in a while but that could change quickly in the weeks ahead. The weekly OBV line has been strong and that is at odds with the price action. The MACD oscillator is below the zero line in bear territory
In this daily Point and Figure chart of UPS, below, I can see a downside price target in the $172 area. Prices could start trading Tuesday at this price target.
In this weekly Point and Figure chart of UPS, below, I used close-only price data with a five-box reversal filter. Here the software projects a downside price target in the $119 area. Maybe.
Bottom line strategy: Avoid the long side of UPS. Further declines are anticipated in the days and weeks ahead.
