Looking at the technical picture of the United Parcel Service Inc. stock (NYSE: UPS) on our daily chart, we can see that, overall, the share price is trading well below a short-term tentative downside resistance line taken from the high of February 1st. From around April 7th the stock is trading sideways, roughly between the 185.70 and 192.70 levels. Given that the prevailing trend was to the downside, there is a chance that UPS could breakout to the downside. However, as long as the stock stays in that range, we will take a neutral stance.
If, eventually, the share price drops below the lower bound of that range, this will confirm a forthcoming lower low. Such a move may keep the buyers away, for a while. UPS could fall to the 180.63 obstacle, a break of which might set the stage for a move to the lowest point of October 2021, which is at 177.15.
The RSI is below 50 and points slightly lower. The MACD is flat, but continues to run below zero and the signal line. Overall, the two oscillators show negative price momentum, which supports the idea mentioned above.
A break through the upper side of the range, which is at 192.70, may invite a few more buyers into the game, potentially leading to a larger correction higher. The stock might travel to the 202.06 obstacle, or even to the 205.99 level. That level marks the high of April 4th.
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