Last week was a rough one for FedEx (FDX) . The stock was hit with an aggressive selling wave on Tuesday that drove shares sharply lower through the end of the week. On Thursday (the end of the trading week, as Friday was a holiday), FDX returned to a major support zone but is beginning to look very vulnerable to a clear break below this area.
After Thursday's close at new 2017 lows, shares will need to stabilize soon. If not, a new down leg could be on the way.
After peaking in early December, FDX began a healthy consolidation. The stock traced out an orderly pullback over the next four weeks before reaching major support near the $185.00 area. FDX bottomed near this important level in early February as well and even appeared headed for an upside breakout as March began.
After peaking in early December, FDX began a healthy consolidation. The stock traced out an orderly pullback over the next four weeks before reaching major support near the $185.00 area. FDX bottomed near this important level in early February as well and even appeared headed for an upside breakout as March began.
The stock's attempt to take out the 2017 highs failed twice last month and again in early April. This latest failed attempt now looks especially ominous. With this massive amount of overhead pressure now in place, the major support zone the has held the January, February and March lows could soon give way.
As a new week begins, FDX investors should keep a close eye on the $183.00 area. This level marks the lower band of the support zone. A clear break below would leave behind an ominous top. The next key level would be FDX's 200-day moving average near $180.00. If the stock can regain its footing near the 200-day a low risk entry opportunity could develop for this A-rated stock.
By: Gary Morrow (The Street).
Photo: The Wall Street Journal.
Review: Emerging Market Formulations & Research Unit, Flagship Records.
As a new week begins, FDX investors should keep a close eye on the $183.00 area. This level marks the lower band of the support zone. A clear break below would leave behind an ominous top. The next key level would be FDX's 200-day moving average near $180.00. If the stock can regain its footing near the 200-day a low risk entry opportunity could develop for this A-rated stock.
By: Gary Morrow (The Street).
Photo: The Wall Street Journal.
Review: Emerging Market Formulations & Research Unit, Flagship Records.