01/21/2021
Currently trading at 235.34, about to approach the 200EMA. I posted the chart so you guys can see what I see. This MA has been STRONG support and resistance for $FDX in the past, and now its looking to approach directly into the number. With strong fundamentals, and a contract to ship the COVID vaccines around the US, I am expecting this to be a good play.
My prediction: FDX will slowly go towards the 200EMA, touch it and bounce, or stay on the number. UPS delivers earnings reports on 2/2, if they blow out of the water due to the high demand (bc of vaccines), you can expect FDX to also rally strong. My prediction is price will stay near the 200EMA, then rally away once UPS beats earnings. FDX can also go into the EMA, bounce away and use the UPS earnings as momentum to accelerate away from price.
Note: This trade fails if it gaps below the 200EMA, and it starts closing daily below it. If you can, you want to take the trade very close to the 200EMA, maybe even a little above, cuz you don't want to miss the entry.
Key Levels:
Support: $230.27, $226.47 (The 200 EMA as of Friday), $217.50 (where I expect the 200SMA to be in a few days).
Resistance: $256-257, $276, $293.
I would take the 250C or 270C option if possible, maybe a mid march expiry. The 255C option will see a big increase in price once it reaches the 255 goal, I would take some profits there.
Also important to note: This is dependent on the SPY not taking a massive shit this week, because it has been closing very weak as of late, and I would not be surprised if the whole market takes a downturn from here. If the market can make a recovery from here, then this play is much much more likely to work.
Currently trading at 235.34, about to approach the 200EMA. I posted the chart so you guys can see what I see. This MA has been STRONG support and resistance for $FDX in the past, and now its looking to approach directly into the number. With strong fundamentals, and a contract to ship the COVID vaccines around the US, I am expecting this to be a good play.
My prediction: FDX will slowly go towards the 200EMA, touch it and bounce, or stay on the number. UPS delivers earnings reports on 2/2, if they blow out of the water due to the high demand (bc of vaccines), you can expect FDX to also rally strong. My prediction is price will stay near the 200EMA, then rally away once UPS beats earnings. FDX can also go into the EMA, bounce away and use the UPS earnings as momentum to accelerate away from price.
Note: This trade fails if it gaps below the 200EMA, and it starts closing daily below it. If you can, you want to take the trade very close to the 200EMA, maybe even a little above, cuz you don't want to miss the entry.
Key Levels:
Support: $230.27, $226.47 (The 200 EMA as of Friday), $217.50 (where I expect the 200SMA to be in a few days).
Resistance: $256-257, $276, $293.
I would take the 250C or 270C option if possible, maybe a mid march expiry. The 255C option will see a big increase in price once it reaches the 255 goal, I would take some profits there.
Also important to note: This is dependent on the SPY not taking a massive shit this week, because it has been closing very weak as of late, and I would not be surprised if the whole market takes a downturn from here. If the market can make a recovery from here, then this play is much much more likely to work.