FDX Price Analysis (Short to Long Trade Idea)
FDX Analysis:
On Feb 16th Sep. 2022, FDX sold off massively to create a huge gap ranging from $164.36 to $201.93. Before beginning a move back to the upside to fill this gap, FDX first dropped to a major demand zone at $132.83 - $141.26 which was also in confluence with the monthly chart 200 MA/EMA. It then ranged between $147 - $160 from the beginning of October to the beginning of November before finally breaking the 164.36 mark to begin the larger gap fill between $164.36 - $201.93. After the breakout, FDX began to consolidate in a rising wedge while partially filling the gap midway before rejecting the weekly 20EMA at 182.40. As of now, FDX has broken below this rising wedge and is retracting to retest lower timeframe supply area to either create a head and shoulders pattern or maybe even a close double bottom (lower higher). Dec 9th, 2022 daily candle attempted to test this area and rejected it while also rejecting the 9EMA on the daily.
Trade Idea:
We are watching for a small move up to retest the supply area, hopefully getting a touch of the support line (short green line) at the rising wedge to show that it has turned resistance (Note: This area of interest is marked by the red circle). This would be ideal because we would get a better entry closer to the stop loss with more confirmation and a better risk/reward. Just in case, watch for a continued move down below $170.08.
We are looking to enter a short term put swing to target to the support area between $161.80 - $164.36 and the intermediate uptrend line (larger green line) for a take profit (NOTE: This take profit area is marked by a yellow circle. After this play, we are watching to see if we can get confirmation for a bounce at this area for a continuation not only to the upside to fill the rest of the gap between $182.40 - $201.93 but to also get a 5th touch of the major downtrend area (large downward slanted red lines). So basically that will possibly be another trade opportunity in the near future.
SN: FDX has earnings on Tuesday, Dec 20th 2022 which would we be key in the watch the reaction at that support zone (green area below rising wedge) and intermediate uptrend (upward slanted green lines). ALSO NOTE, there is a strong resistance/supply area above between $189.30 - $195.33 which is a crash course with the 200MA/EMA on the daily timeframe. This could be where we see price meet supply, the 200MA/EMA, and the major downtrend area (large downward slanted red lines).
On Feb 16th Sep. 2022, FDX sold off massively to create a huge gap ranging from $164.36 to $201.93. Before beginning a move back to the upside to fill this gap, FDX first dropped to a major demand zone at $132.83 - $141.26 which was also in confluence with the monthly chart 200 MA/EMA. It then ranged between $147 - $160 from the beginning of October to the beginning of November before finally breaking the 164.36 mark to begin the larger gap fill between $164.36 - $201.93. After the breakout, FDX began to consolidate in a rising wedge while partially filling the gap midway before rejecting the weekly 20EMA at 182.40. As of now, FDX has broken below this rising wedge and is retracting to retest lower timeframe supply area to either create a head and shoulders pattern or maybe even a close double bottom (lower higher). Dec 9th, 2022 daily candle attempted to test this area and rejected it while also rejecting the 9EMA on the daily.
Trade Idea:
We are watching for a small move up to retest the supply area, hopefully getting a touch of the support line (short green line) at the rising wedge to show that it has turned resistance (Note: This area of interest is marked by the red circle). This would be ideal because we would get a better entry closer to the stop loss with more confirmation and a better risk/reward. Just in case, watch for a continued move down below $170.08.
We are looking to enter a short term put swing to target to the support area between $161.80 - $164.36 and the intermediate uptrend line (larger green line) for a take profit (NOTE: This take profit area is marked by a yellow circle. After this play, we are watching to see if we can get confirmation for a bounce at this area for a continuation not only to the upside to fill the rest of the gap between $182.40 - $201.93 but to also get a 5th touch of the major downtrend area (large downward slanted red lines). So basically that will possibly be another trade opportunity in the near future.
SN: FDX has earnings on Tuesday, Dec 20th 2022 which would we be key in the watch the reaction at that support zone (green area below rising wedge) and intermediate uptrend (upward slanted green lines). ALSO NOTE, there is a strong resistance/supply area above between $189.30 - $195.33 which is a crash course with the 200MA/EMA on the daily timeframe. This could be where we see price meet supply, the 200MA/EMA, and the major downtrend area (large downward slanted red lines).
Trade closed: stop reached
Dennis Butler Jr.