UPS Stock Price Prediction: Can Profit Booking Lead To Reversal?

• UPS  stock price slid 1.45% in the last trading session and is currently trading at $170.74.
• United Parcel Service’s (NYSE: UPS) quarterly earnings triggered a sell-off wiping out nearly 7% of its value in the past 7 days. 

UPS stock price has been in a correction phase after bottoming out in October 2022. The price tried to recover but suffer rejection from an upper trendline resistance thus forming a symmetrical triangle pattern on the daily chart.

Since then the price has been trading in the range and narrowing its area of trading. Recently, the price took a rebound from the lower trendline of the symmetrical triangle pattern and surged before the disclosure of the results to consolidate near the upper trendline.

However, the quarterly results led to profit booking and slid down near the previous support level.

United Parcel Service (NYSE: UPS) is a company that delivers packages and offers global supply chain management solutions. It has three segments: U.S. Domestic Package, International Package, and Supply Chain Solutions. The U.S. Domestic Package segment delivers letters, documents, and packages within a specific time frame.

UPS stock option-chain analysis states that the current implied volatility in the market is 23.21% with an increment of 0.92% in the last trading session. The at-the-money strike price has 4,206 open contracts on the put side and 160 open contracts on the call. Side indicating the dominance of buyers at the current level. The PUT/CALL ratio is 1.04 indicating bullish sentiment in the market as per the data.

UPS Stock Price May Take A Rebound From The Support Zone

The UPS stock price currently trades at $170.74 and nearing the previous demand zone from where it may get buyers’ support.

The short-term trend for the stock is currently indecisive until the price remains in the range of a symmetrical triangle pattern. The price may show a directional move after a breakout on either side.

The Technical Indicators Shows Weakness In The Short Term.

The daily UPS stock price chart shows that the price is failed to sustain above the 50 and 200 EMA indicating a short-term bears domination in the market. The overall Technical Opinion rating include RSI and MACD is signaling a 56% sell with a strengthen short-term outlook on maintain the current direction.

Conclusion

UPS stock price prediction concludes that the stock price has been corrected after a low in October 2022. It faced resistance from a trendline and formed a symmetrical triangle. It bounced from the lower trendline and consolidated near the upper one. The quarterly results caused a sell-off and the price dropped to a previous support level. The stock is undecide until it breaks out of the triangle.

Technical Levels

• Support levels: $169.15 and $164.94.
• Resistance levels: $190.11 and $197.73.

Disclaimer

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