FedEx Breaking Out Of A Four Month Consolidation Phase

By | June 7, 2018

FedEx (FDX) shares have been testing resistance in the $257 area for the last four months. In May they began making a series of higher lows, in preparation for another run at this level.

At this early point in the Thursday session, the stock has broken and is trading above the $257 level. A close here would suggest that an intermediate term basing process is over and FedEx is ready to resume its 2017 uptrend.

The daily moving average convergence/divergence oscillator on the chart is overlaid with a weekly histogram of the oscillator, and is tracking higher on both time frames. This reflects bullish short term momentum and trend direction.

Overall volume has been declining and will have to improve to support a confirmation of the breakout move. But Chaikin money flow moved into positive territory and is above its signal average, an early indication of buying interest.

If FedEx were to return to trend the wide base it has established suggests a large move, one that would take the stock price to new highs.

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