FDX finds buyers again around 217.65
FedEx Corporation (FDX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
FDX finished the week -6.38% lower at 221.00 after gaining $3.58 (1.65%) today, slightly outperforming the S&P 500 (1.42%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FDX as at Oct 12, 2018):
Friday's trading range has been $7.11 (3.17%), that's far above the last trading month's daily average range of $5.21. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for FDX.
Prices are trading close to the key technical support level at 216.81 (S1). Prices are trading close to the key technical resistance level at 222.44 (R1). After having been unable to move lower than 216.81 in the prior session, the market found buyers again around the same price level today at 217.65. The last time this happened on Monday, FDX actually lost -2.23% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 237.98.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 216.81 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for FedEx Corporation. Out of 565 times, FDX closed higher 54.87% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.65% with an average market move of 0.95%.