FDX took a hit in Q1 2019 due to a poor earnings report. It looked like a great short going into the end of March, but a strong surge of buying pushed it through the chop zone and into the next level of support. Elevator down through here, so expect a quick surge followed by a test around 200. Target 196-200, with possibility for a strong short play on the reversal.
Fedex has had a year to forget, economic slowdown, trade war, dollar strength and miscommunications have made investors run for the hills. Buyers have started to return in the last quarter as the stock provides a good risk reward opportunity. Current indicators point to future gains and the price has just broke over the 100ma and resistance level.
FDX is approaching our first resistance (horizontal pullback resistance, 38.2% fibonacci retracement, 100% Fibonacci extension) where a strong drop might occur below this level to our major support (50% fibonacci retracement).
Stochastic is also approaching resistance where we might be seeing a corresponding drop below this level.
FDX is approaching our first support at 169.20 where we might see a bounce above this level to our first resistance at 183.37. Stochastic is approaching support as well where we might see a corresponding bounce in price.
Fed Ex is in an early stage of Doom. Believe or not the company in not profitable. So much that team leaders are having to tighten there spending across the board. This means No hiring, No raises, and even No team lunches. There are a plethora of reasons for this change in direction and we all can see the inevitable. Primarily huge corporate spending with larger...
I like this break of support on the weekly chart for a entry with it coming back down again to the 100MA on the monthly. It was there recently and could make it back again. If it doesn't break this support could be a good entry for a long term play.
Some might be tempted to scalp this tomorrow, but I'd wait for the Fed meeting to play out before making any moves. Right now it seems like a better bet as a short on the throwback from the channel it just broke down from, which looks to me like the handle of a giant inverted C&H. The long term prognosis here is not good...
Fed Ex FDX released earnings after the closing bell this afternoon,
and the stock immediately dropped 5 % to 172.50 in after hours trading
on the companies forecast of markedly slower world demand for shipping in 2019.
It is most interesting to note that Fed Ex stock peaked at 275 a share
way back in Jan.2018,and has been falling almost straight down ever...