Stock of the day: FedEx

Yesterday’s inflation data was definitely a cold shower for dollar bears and of course for stock owners. The correction on indices and stocks was largely expected, but the magnitude of it, not so much. With yesterday’s reversal, we have an interesting trading opportunity today, straight from the NYSE.

Today’s hero is FedEx, which was actually bullish last week. The price bounced from a key long-term support around 200 USD (orange) creating a promising candle with a long tail. Up until yesterday, a further move towards the green down trendline seemed really inevitable. Then the inflation data came in and changed those plans. The current weekly candle is bearish and the base scenario for now is the price testing the 200 USD again.

We have to keep in mind that the price staying above that support is crucial for the buyers. FedEx closing a week below the orange support would mean a legitimate sell signal with a first target on the 61.8%.