FedEx Looks Bullish Going Into Earnings, but Be Cautious

FedEx Corp. (FDX) is scheduled to report its fiscal fourth-quarter results after the close of trading here on Tuesday. Let’s check and see if the shipping giant can stay on course for higher prices.

In this daily bar chart of FDX, below, I can see that prices have been climbing higher since making a low back in September. FDX trades above the rising 50-day moving average line. The slope of the slower-to-react 200-day line is flat but could turn positive soon. The On-Balance-Volume (OBV) line bottomed in October and turned higher, telling us that buyers of FDX have been more aggressive than sellers. The trend-following Moving Average Convergence Divergence (MACD) oscillator has just turned upward from zero for a new outright buy signal.

In this weekly Japanese candlestick chart of FDX, below, I can see that prices have broken their 2021-2022 downtrend. Prices now trade above the flat 40-week moving average line. Some of the recent candle patterns show lower shadows, telling me that traders are rejecting the lows. The weekly OBV line shows a slight rise from September. The MACD oscillator is above the zero line but has narrowed sharply and is close to a fresh signal — up or down.

In this daily Point and Figure chart of FDX, below, I can see the recent new high for the move up and a potential price target in the $279 area.

In this weekly Point and Figure chart of FDX, below, I can see the same price target as the daily chart above — $279.

Bottom line strategy: Viewed independently, the charts of FDX are bullish. Viewed with an eye on the broad market averages we could see FDX turn sideways for a while before resuming its uptrend. FDX might pull back into the $230-$220 area. Stay nimble.

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