A head and shoulder pattern has developed on FDX (FedEx Corp.). As we wait for the right shoulder to finish closing with the neckline, the trading plan can be prepared.
When the price breaks the neckline downwards, a short position is the best choice. Placing the position around $149.72, a little lower than the neckline, just in case it rebounds.
The Take Profit should be in theory as long as the distance between the neckline and the head, but as the previous lower price point is around $138.05, that’s where our take profit should be.
A Stop Loss should be around the distance of the shoulders, on this occasion we placed it approx. to the left shoulder, at $160.73.