New management and new board members have sparked new interest in FedEx (FDX), particularly yesterday when the shares popped 14.4% after the company announced a 53% dividend increase which was significantly more than what investors were hoping for. This price surge propelled FedEx directly from the red zone to the Green Favored Zone in the SIA S&P 100 Index Report. FedEx had last been in the Green Zone in August of 2021. Yesterday it finished in 23rd place, up 38 positions on the day and up 55 spots in the last month.
A major breakout is underway in FedEx (FDX) shares. Since April of 2021, the shares had been in a downtrend but since March, FDX has been hammering out a base in the $195-200 area. Yesterday, the shares soared up off that base, staging a breakaway gap upward on big volume, and snapped two downtrend lines, all combining to signal renewed interest and the start of a new uptrend.
Based on previous highs, initial support may appear near $240 or $260 on trend, along with the $250 round number and $255 based on a measured move. Initial support moves up toward $220.
FedEx (FDX) staged a major breakout yesterday, completing a bullish Triple Top pattern and snapping out of a long-term downtrend. The shares had been bottoming out since May and had started to form a bullish Ascending Triangle pattern which also completed yesterday.
Initial upside resistance appears near the $50.00 round number, followed by $269.95 and $298.00 on trend both of which are based on previous column highs and horizontal counts. Initial support appears near $208.65 based on a 3-box reversal.
The SMAX score for FedEx increased to 5 yesterday, indicating that it is still exhibiting weakness relative to the asset classes but it is now only one position away from a more bullish score.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.