Stock of the day: UPS

In today’s Stock of the Day, we’re looking at UPS, which is presenting a clean and technically strong sell signal as bearish momentum continues to build.

The chart shows a consistent downtrend, with price action forming lower highs and lower lows — a clear negative structure. Along the way, a small wedge developed and resolved to the downside, confirming sellers were in control.

Now the focus shifts to a larger flag pattern, which had been forming as a continuation structure. That flag has now been broken to the downside, which acts as a fresh bearish trigger. The target is set on the April lows, which marked the base of the flag when it began forming.

This sequence — downtrend, wedge breakdown, and now flag breakout — adds to the conviction behind the sell signal.

There is, however, still a possibility of a false breakout. If UPS climbs back above the lower line of the flag and re-enters the pattern, that would cancel the sell setup. But unless that happens, sentiment remains firmly bearish.