Yesterday, the FedEx Corporation stock (NYSE: FDX) popped higher, breaking and staying above a medium-term downside resistance, line drawn from the high of September 13th, and also above its resistance barrier, at 164.48, marked by the highest point of January. At the same time, the price closed the trading session above its 200-day EMA, which also adds a positive spin to the whole near-term outlook. All this created a new higher high and a higher daily close for 2020. For now, we will take a bullish approach and aim for further upside.
Another push north could lead FDX to the 168.35 hurdle, or even to the 171.02 zone, which is the low of September 16th. The price may get halted around there, which could even lead to a small correction back down. However, if the stock remains above the 164.48 area, we will continue targeting the upside. That’s when we will aim for the 171.02 zone again, which if breaks, could attract more buyers into the game and send FDX to the 176.24 level, marked by the highest point of September.
Judging from the movement of our oscillators, the RSI and the MACD, both seem to support the idea of the upside for now. So far, the indicators are pointing higher. In addition to that, the RSI is above 50 and the MACD is above both its zero and trigger lines.
Alternatively, if the share price falls back below the 200-day EMA and the aforementioned downside line, that’s when new buyers may step aside from entering for a while. If FDX moves below the 156.21 territory, which is the low of February 10th, that’s when a few existing investors could liquidate some of their positions in fear of further declines. The stock might then drift to the 151.38 zone, a break of which could clear the way to the 146.50 level, marked by the low of February 7th. Around there, the price may also test a medium-term tentative upside support line taken from the lowest point of October 2019.
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