As I attempt to understand if the bottom is in for the remainder of 2023, I look for clues. Below are three stocks I found interesting for their tops, and important support/resistance levels shown. Let’s take a look.
UPS is an interesting stock to follow for me, although I rarely trade it. I was short the stock briefly this spring, but was not involved with UPS during this fall’s significant decline. Looking at the chart below you can see that the stock had a massive run higher post-Covid, and then constructed a well formed top over the past three years. The top appears to be breaking down with the weakness UPS has seen over the past couple months. The two dashed lines should make for a good stops for those interested in shorting the stock.
Next up is a stock that I have never followed or traded before… Sysco. Brings back wonderful memories of corporate cafeterias, no? The topping structure is somewhat similar to UPS, and you can see the support/resistance line below.
Finally, I think financials will continue to be a key bearish driver. Bank of America (BAC) is a stock that I have continued to follow. The stock has been in a downtrend since early 2022, and has lost roughly half its value in that time. What catches my eye on the chart below is that BAC continues to print a clean series of lower highs and lower lows. In keeping with that theme, I think bears can remain comfortably short the stock under the line shown below.
