UPS has experienced significant volatility in 2026, particularly in contrast to the strong performance of the S&P 500 and other indices since 2023. The stock has rebounded from a downturn in May, reaching around $110, where it has tested resistance multiple times.
This price action has formed a bullish cup-and-handle pattern, with a breakout above the upper resistance line potentially targeting $128, surpassing its highest level of 2026. A stop loss near $104 is recommended for risk management.
On a broader scale, the weekly chart indicates the possibility of a larger rounding bottom, which could signify a significant base forming if UPS can break its 2026 high.
Recent improvements in moving averages and the 14-week relative strength index (RSI) suggest a shift in momentum, as UPS has spent more time above key moving averages and the RSI has shown stronger performance compared to previous months.
The relative performance chart against the S&P 500 indicates that UPS's underperformance may be reversing, with signs of a higher low and an upward trend in the monthly relative RSI. Overall, while UPS has been overlooked by many investors, the recent technical improvements indicate it may be worth monitoring as a potential turnaround candidate