FDX climbs to highest close since October 4, 2018
FedEx Corporation (FDX) Technical Analysis Report for Sep 15, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FDX finished Tuesday at 236.67 edging higher $0.33 (0.14%) on high volume, slightly underperforming the S&P 500 (0.52%). Today's close at 236.67 marks the highest recorded closing price since October 4, 2018. Trading up to $4.48 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. 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 Sep 15, 2020):
Tuesday's trading range has been $9.34 (3.97%), that's far above the last trading month's daily average range of $6.33. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FDX.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 241.00 (R1). After having been unable to move above 241.00 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 239.85. The last time this happened on September 10th, FDX actually gained 3.72% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 220.95.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 241.00 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for FedEx. Out of 783 times, FDX closed higher 55.17% 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 61.30% with an average market move of 1.04%.