Potential Downtrend in UPSUnited Parcel Service has been falling since the middle of last year, and some traders may see risk of another acceleration to the downside.
The first pattern on today’s chart is the arrangement of the 50-, 100- and 200-day simple moving averages (SMAs). The faster SMAs have mostly remained below the slower ones, which is potentially consistent with a long-term downtrend.
Second, the series of higher highs and higher lows since August may be viewed as a potential bearish flag. Further declines from here may suggest a breakdown is occurring.
Third, UPS spiked toward $145 after the last quarterly report in October but quickly faded. That potentially confirmed resistance near the July 22 close, one day before a bearish earnings gap.
Next, MACD is falling. The 8-day exponential moving average (EMA) has also crossed below the 21-day EMA. Both of those patterns may suggest the short-term direction is growing bearish.
We end with the weekly chart. The October 2023 low around $134 offered support in June. Prices tried to reclaim it last month but are now back below it. Is that longer-term level breaking?
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