Stock of the day: FedEx

In today’s Stock of the Day, let’s examine FedEx, which is showing potential to climb higher, but faces significant challenges from the negative broader market sentiment. Currently, the price is trying to defend a crucial support level at $245 per share, marked in blue on the chart. This level was a key support area in May and June, and a recent test of this support resulted in a bounce, suggesting demand at this level.

However, the general sentiment in the market remains negative, which poses a potential obstacle for FedEx’s bullish ambitions. The ongoing weakness in global indices and the risk-off sentiment are likely to limit the upside potential for now.

Nevertheless, if there is a broader market reversal, and FedEx closes a day above the black downtrend line, it would be an excellent long-term buy signal. This would indicate a breakout from the bearish channel, setting the stage for a bullish continuation.

On the contrary, if the price closes a day below the blue support, it would be a bearish signal, suggesting that the support has failed, and would open the door to further downside, aligning with the negative market sentiment.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-fedex