Fedex Short OpportunityFedex Looking short as fundamentals are saying to sell this up right away plus it is rejecting over major resitance
FDX trade ideas
FEDEX forming another double topThis FDX weekly charts is one of my favourites. When I see a double top it is a very good indication that there will likely be significant downside. Lets see
Bullish update on FDXFDX has started another rally that has more to go short term and long term. We need to move above 185 to end something. We are not there yet thus rally not over. How exactly we will get there is another story.
Short term it appears we need at least another push up but it would look better the way I labeled the climb as shown here on this weekly chart. Doing just that going into May then that would be a case of "Sell in May and go Away".
Becareful of your Deliveries....Price is retesting the high with great force....Watch for a rejection back down to consolidate before it resumes the uptrend.
FedEx StrengthStrong Weekly Englufing Pattern. Additionally, MFI indicates a Bullish Divergence. It is showing continued underlying strength
Light at end of technical tunnel?Broke above trend line. Ready to move up if bulls want it bad enough from ER.
EARNINGS PLAYS THIS COMING WEEK -- FDX, ORCLOnly two earnings plays stick out to me this coming week -- FDX and ORCL, both of which announce earnings on 12/16 (Wednesday) after market close, so look to put on setups before NY close on Wednesday.
Currently, FDX's 52 week IVR is at 54 (IV 34), which isn't stellar, but it's at 92 for the past six months. Moreover, there is pretty good credit to be had whether you go short strangle or iron condor, so I imagine I'll play that one way or another if the IV sticks in there.
ORCL (IVR 75/IV 35) isn't looking all that hot, frankly, because I can't get 1.00 in credit with either a short strangle or iron condor (a Dec 24 34.5/39.5 short strangle will only get you a .61 credit at the mid price right now, which isn't anything to go crazy over; a same expiry iron condor just isn't worth it). Nevertheless, we could see a greater volatility pop toward earnings that makes it a little bit more worthwhile such that I'll play just because there isn't that much else worthwhile to do ... .
(Of course, there is that all FOMC thing next week, too).
Express delivery // Bullish Bat & AB=CD patterns // IF=THEN ®NYSE:FDX
Bullish BAT:
Point B:
38.2% to 50% XA
Point C:
38.2% to 88.6% AB
Point D:
88.6% XA (buy)
Targets:
TP1 38.2% AD
TP2 61.8% AD
Safe Trades;
FDXUpdated notes on chart. Price did continue on to the upper trend line as expected, but didn't close above it on a weekly basis. Lower t/l seems probable.
FDX potential put sale 160 or 162.50 May 2k 5 Put sale
or could consider a bull put spread.
200 SMA is a nice support along with $163.46
AO 4/29/15
Update on FDXIf you look at our chart of monthly FDX, the big picture hasn't changed, long term the rally is not over and once current correction is done, FDX will move back above 184.
I just don't know now if the sideways action is still a bullish triangle or a bearish one. Both are possibles. Corrections are complex patterns.
As long 166 holds, the current labeling holds with a rally in the cards pretty soon.
As long 164 holds the bullish triangle is still unfolding, just taking its time. That would be wave C and more sideways action will be needed before take off.
But if we breach 164 then it is a bearish triangle that should push prices lower towards 158.
FDX revisitedSince last update, FDX went lower without negating its bullish triangle and now we think it is over. Moving above the upper trendline will confirm that scenario. Target will be published once we get above that resistance.
Although not expected, moving below 170 will mean a bit more weakness towards 160 before moving back up as shown in the monthly chart linked below.
In the event we are right and and are indeed sprinting out of a triangle, that would be quite foretelling for the future as triangles are structures preceding the last move in a sequence. For FDX we think that sequence started in late 2012 and once over one has to expect a multi-month choppy correction.
FDX Bullish Contracting triangleFDX appears to be moving sideways in a bullish contracting triangle that should lead to new high pretty soon. Over or not, current price action is choppy and sure looks like as a series of "three's" better labeled as a running triangle ( or a bullish flag ).As triangles precede the last move up within a wave, that would mean once FDX breaks out on the upside one will have to expect some kind of top follow by a pull back that could be meaningful.
