Watch These UPS Stock Price Levels Following Earnings-Driven Plunge

United Parcel Service (UPS) shares dropped 12% connected Tuesday, hitting a four-year low, aft nan shipping elephantine posted a steep diminution successful second-quarter profit and trimmed its outlook, arsenic package deliveries normalize from pandemic-era highs.

Amid nan earnings-driven sell-off, we move to technical analysis to place important value levels connected nan UPS play floor plan to watch retired for.

Breakdown From Descending Triangle

Since nan 50-week moving mean (MA) crossed beneath nan 200-day MA to shape an ominous death cross awesome successful December past year, UPS shares person traded wrong a textbook descending triangle. The pattern, which indicates a continuation of nan stock’s existent downtrend, comprises 1 inclination statement connecting a bid of little highs and a 2nd horizontal trendline connecting a bid of lows. 

Indeed, nan transportation giant’s stock value has staged a decisive breakdown from nan shape this week connected supra mean trading volume pursuing Tuesday’s earnings-driven drop, suggesting beardown trading momentum down nan move.

Monitor These Levels Amid Follow-Through Selling

If follow-through trading continues, investors should show 3 important floor plan levels wherever nan shares whitethorn brushwood support.

Firstly, it’s worthy keeping an oculus connected nan $125 area, a precocious probability semipermanent support level adjacent a horizontal statement linking 2 salient swing highs that formed betwixt September 2018 and November 2019.

A nonaccomplishment to clasp nan supra area could spot nan shares retrace to astir $103, wherever investors whitethorn look for buying opportunities adjacent to a trendline connecting respective peaks and troughs from March 2018 to April 2020.

Finally, a much important diminution whitethorn spot nan banal revisit $93, a location connected nan floor plan that encounters support from 3 swing lows that played retired betwixt December 2018 and May 2020.

Interestingly, a bars shape that extracts nan impulsive downtrend that precedes nan descending triangle and positions it from nan pattern’s little trendline predicts a downside price target of astir $100, sitting wrong nan scope of nan little 2 support levels pointed retired above.

UPS shares were down 0.3% astatine $127.32 successful premarket trading Wednesday astir 2 hours earlier nan opening bell. The banal closed Tuesday astatine its lowest level since July 2020.

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As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.