On the eve of United Parcel Service's earnings report tomorrow, traders are focused on the stock as a bellwether because transportation companies are especially sensitive to changes in economic conditions.
The daily chart does not yield any significant clues, but the monthly time frame provides some indications of how the stock might behave after its quarterly results.
I have drawn in a linear regression slope and projected it to the right of the chart shown below. As we can see quite clearly without the clutter of daily price moves, the stock has fallen away from an uptrend that began back in early 2009.
Price would need to reconnect with that line, now in the lower to mid-$80s, for UPS to get back on track. I have drawn in a historical resistance level in red, just about at $80, that is the first big potential for the stock on positive news. It would have to move above that area for the shares to show a long-term bullish trend.
On disappointing earnings or outlook, the green horizontal line at the $66 area could well become a downside target. We've seen the shares fall to the low $60s in the last six months.
The flattened series of lower bars on the far right could be important support on particularly bad news. This corresponds with resistance/sideways motion at the far left of the chart from 2002-2003. 
(Chart data provided by Thomson Reuters)
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