Wednesday, May 20, 2015

FedEx Corporation (NYSE: FDX)

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The company’s FedEx Express segment provides various shipping services for the delivery of packages and freight; international trade services specializing in customs brokerage, and ocean and air freight forwarding services; international trade advisory services, such as assistance with the customs-trade partnership against terrorism program; and customs clearance services, as well as global trade data, an information tool that allows customers to track and manage imports. Its FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers high volumes of low-weight and less time-sensitive business-to-consumer packages. The company’s FedEx Freight segment offers less-than-truckload freight services, as well as freight-shipping services. Its FedEx Services segment provides sales, marketing, information technology, communications, customer service, and other back-office support services.
Take a look at the 1-year chart of FedEx (NYSE: FDX) below with my added notations:
1-year chart of FedEx (NYSE: FDX)
FDX had formed a clear resistance at $174 (red) over the last 2 months. In addition, the stock has been climbing a short-term, trend line of support (green) since the end of March. These two levels combined had FDX stuck within a common chart pattern known as an ascending triangle. Eventually, the stock had to break one of those levels, and on Friday it broke above the resistance.

The Tale of the Tape: FDX broke above its $175 resistance level. A long trade could be made at or near that level with a stop placed underneath it. A break back below the $175 level, and the trendline support, would be an opportunity to enter a short trade.
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