$UPS Post Earnings Pullback Trade

Wait 5 sec.

$UPS Post Earnings Pullback TradeUnited Parcel Service, Inc.NYSE:UPSBrent_CalverTrade Setup and Rules Before UPS's earnings report, I already held a position in the stock, as indicated by my notations on the chart. However, my personal trading rules require a minimum profit margin of 10% to maintain any position through an earnings announcement. Since my trade did not meet this threshold, I chose not to hold it through the event. Earnings Reaction and Market Behavior Following the report, UPS experienced a notable gap up in price. My usual approach is to wait several days after an earnings release to observe how the market responds. Often, this period brings a pullback in the stock, and that pattern has occurred here. Technical Analysis and Trade Execution On my chart, I identified what appeared to be a Flag pattern, and I drew a line to track its progression. I set an alert to notify me if UPS broke out above this pattern. This breakout occurred this morning, even as the broader market remained weak. In response, I initiated a half-size position according to my plan. To manage risk, I placed my stop-loss order just below the most recent low, resulting in a risk exposure of less than 4% on this trade. Risk Disclaimer Readers are strongly encouraged to analyze this trading idea independently and consistently apply their own trading rules. It is important to remember that all investments carry risk, and making informed decisions with your own capital is essential.