Stock of the day: FedEx

Today, we return to FedEx, which we analysed a month ago, on February 16. On that day the sentiment was negative and we saw a great chance for a further slide. The price was around 230 USD, when we wrote this:

“Last week, the price dropped sharply and managed to break three crucial supports. The first one was the neckline of this pattern (red), the next one was at 23,6% and the third one was the horizontal support at 238.7 USD (green). Due to all these factors, the sell signal is on.”

Well, that was another great call from our team. The price declined and on the 8^th of March, reached the 198 USD support level. It has since reversed and this reversal is the main topic of this analysis. The price is currently creating an inverse head and shoulders pattern (H&S) (blue). In contradiction to the H&S pattern (yellow) that triggered the drop described on the previous piece.

Currently, FedEx is below the neckline of the inverted head and shoulders pattern (black). As long as the price stays below that line, there’s no proper buy signal but if the price breaks that resistance, it will trigger one. In that case the potential target for buyers would be the green horizontal resistance at 239 USD. Chances it will get there are pretty high.