Like many stocks, UPS went into a classical pattern, which it broke down from. It has since retraced all the way back to an important (as it has now tested this 7 times!). On Friday, XPO , another shipping and logistics company reported a bad quarter citing weakness in France and the UK. This news had a heavy read-through to FDX but not as much to UPS ( FDX was down 5% on the XPO news at one point). However, UPS has still failed to breakout above the shown and has very little fundamental reason to do so. Although old news, Amazon has entered the shipping space and is now a direct competitor of UPS and FDX . This may be more of a reason to see less upside and more downside from the shipping stocks.
I think we can short UPS here around $111:
Target $104 (neckline of )
Stop: Any close above the drawn trendline