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:
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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