FDX finds buyers around 155.66 for the third day in a row
FedEx Corporation (FDX) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
FDX finished Monday at 156.23 losing $2.36 (-1.49%), underperforming the S&P 500 (-0.94%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FDX as at Jul 13, 2020):
Monday's trading range has been $4.56 (2.92%), that's slightly below the last trading month's daily average range of $4.64. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FDX. Prices continued to consolidate within a tight trading range between 155.32 and 160.22 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, three candlestick patterns are matching today's price action, the Gravestone Doji and the Shooting Star which are both known as bearish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 155.32 (S1). FedEx found buyers again today around 155.66 for the third trading day in a row after having found demand at 155.97 in the prior session and at 155.32 two days ago. The last time this happened on March 18th, FDX gained 12.04% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the nearby swing low at 155.32 where further sell stops might get triggered. With prices trading close to this year's high at 165.25, upside momentum could accelerate should the market be able to break out to new highs for the year. As prices are trading close to July's high at 163.65, upside momentum might speed up should the share mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for FedEx. Out of 63 times, FDX closed higher 50.79% 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 66.67% with an average market move of 1.14%.