Investing.com | Mar 19, 2019 11:16
Worldwide shipping and delivery service FedEx (NYSE:FDX) (NYSE:online retailing giant comprises 3% of FedEx's total revenue.
The Amazon threat comes against a background of slowing global growth and surging Bank of America (NYSE:BAC) believes FedEx could turn its fortunes around by delaying half of its planned aircraft purchases from Boeing (NYSE:BA) for two years and buoying the stock with buybacks of as much as $2.5 billion.
Both fundamentals and technicals are signaling a mixed picture for the company and the stock, and the negative views may well be proved wrong, at least in the near-term.The supply-demand balance shows a short-term uptrend, in conflict with medium and long-term downtrends.
The incredible rebound following the December rout paused on Feb. 13. Since then, the price has been ranging, with a downward bias in a falling flag formation, bullish following the previous rally. The pattern development at the top of a falling channel since June—resisted by the 100 DMA—magnifies the conflict between the short- and medium-term trend.
Beforehand, prices were ranging within a less steep descending channel since the Jan. 2018 record high, with the 200 DMA falling toward its bottom, above the top of the steeper, short-term falling channel.
The next major move could determine the short-term to medium-term trend. An upside breakout of the flag would include an upside breakout of the short-term descending channel since June and the 100 DMA. Such a move might recalibrate the trend to a more moderate downturn within the earlier descending channel, in effect since January. Then, bulls would have to prove their commitment, with an upside breakout of that channel.
Meanwhile, the first upside breakout would potentially trigger a cascade of orders—both via a short squeeze and triggered longs—to propel prices higher.
The RSI upside breakout suggests that is what will happen.
h2 Trading Strategies Long Position Setup/h2Conservative traders should wait for an upside breakout of the upper boundary of the descending channel, as well as the flag, including the 100 DMA, below $191. Then, they would do well to wait for a return-move to confirm the reversal, when the price would bounce off the flag and channel-top, with at least a single long, green candle engulfing a red or small candle of either color.
Moderate traders would wait for the same upside breakout as described above. They can wait for the expected pullback as well but for a better entry, not necessarily for proof of the falling flag’s integrity.
Aggressive traders could enter a contrarian trade and go long now, counting on the flag’s completion, as indicated by the RSI, as a pessimistic view provides a bigger potential for a rise than a fall.
Trade Sample
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.