UPS shares formed a "death cross," a technical pattern occurring when the 50-day moving average falls below the 200-day moving average. This marks the first such occurrence for UPS since June 2023. Technical analysts often interpret this pattern as a bearish signal, suggesting potential for further price declines.
The previous death cross in June 2023 preceded a 22% drop in the stock's price over the subsequent five months. The stock recently fell from over $110 in July to below $100 in September. It currently trades below both moving averages, indicating weakening price momentum.
Separately, UPS moved to a new global operating model. This followed a reduction in its volume with Amazon.