Stock of the Day: FOX Corporation

In today’s stock of the day, I would like to discuss the setup developing on FOX Corporation. Since mid-May, the price action has been consolidating within a clearly defined flag formation, marked by parallel black trendlines. This pattern comes after a prior bullish impulse, making it a textbook continuation setup—typically favoring a breakout to the upside.

Looking at the broader context, the structure forming here also resembles the right shoulder of an inverse head and shoulders pattern. The red neckline ties the setup together and, in a more flexible interpretation, even hints at a cup and handle formation if one were to discount the left shoulder. Regardless of the label, the bullish outcome would be the same: a break above the flag and through the neckline would confirm and likely accelerate a move higher.

However, traders should also consider the alternative scenario. A breakdown below the lower boundary of the flag would invalidate the bullish setup and trigger a strong sell signal, suggesting a deeper correction could be on the way.

As price tightens near the flag’s edge, traders should prepare for a decisive move in either direction.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-fox-corporation-2