UPS fell hard on Tuesday, April 25, 2023 to close at $176.29. The previous close was $195.85. The drop was due to earnings. Wednesday the stock continued lower to closed at $172.57. There was a great deal of volume on Tuesday and Wednesday. The loss from Monday to Wednesday represented an 11.5% loss.
Thurday, April 27, 2023 the stock opened at $172.76 and closed at $177.76. This is where the rebound started and it continued on Friday to close higher at $179.8.
Where does UPS stock go from here? From a bullish perspective, first I think stock has to close above the $183, to get back into the gap area. There is some resistance at $186 and $188. Going higher there is much stronger resistance at the $194 price point.
Here is the bearish scenario. If the stock does not continue to charge higher and starts to decline, $172 level offers strong support as the first level. A close below $176.25, then the stock could fall further to a low of $172.57 which served as the second level support. This happens to be the lowest price after the earnings disappointment.
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Thanks,
Mike
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