FDX plunges -2.5% closing $4.31 lower
FedEx Corporation (FDX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
FDX finished the month 20.1% higher at 168.40 after tanking $4.31 (-2.5%) today, notably underperforming the S&P 500 (0.77%). This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on June 26th, FDX actually gained 3.44% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 169.86, the stock confirmed its breakout through the previous session low after trading up to $1.87 below it intraday.
Daily Candlestick Chart (FDX as at Jul 31, 2020):
Friday's trading range has been $4.72 (2.74%), that's above the last trading month's daily average range of $3.97. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for FDX.
One bearish candlestick pattern matches today's price action, the Black Candle.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 163.86 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for FedEx. Out of 459 times, FDX closed higher 55.56% 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 58.39% with an average market move of 0.93%.