Very often stocks we have looked at in the past make their way back on to our radars several days or weeks later due to the levels we keyed in on coming back into play. Today, we have a similar situation with United Parcel Service (UPS).

Rewinding it back a couple weeks when we first looked at this stock, the level we were watching were the 166 and 172 levels. Now, fast forward to today, we are trading well below this lower level after the stock broke down through it in a massively bearish move.

However, the reason we are looking at it today is because it is approaching a new level of support from earlier in the year right around 154. If you zoom out, you’ll see that this level goes back quite a while where price held steady before making some massive moves higher.

Will this be the case once again? Only time will tell, but one thing is for sure, if this level breaks down lower price will surely be in the future for UPS. Make sure to keep this trade on watch for what’s to come and remember to keep an eye on price action at these key levels. This will be the tell all.

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Good Luck With Your Trading!

Christian Tharp, CMT