FedEx Corp. (FDX) is due to report their latest earnings tonight. I have no special insight(s) on their numbers but I can look at their price charts and technical indicators, and draw some conclusions.
In this daily bar chart of FDX, below, we can see two trends over the past 12 months. First is the downtrend from September to December with prices dropping more than $100, and then there is a sideways trend from December to now.
A decline below $150 will likely signal a new downtrend while a rally above $200 is needed to establish an uptrend. The slopes of both the 50-day and the 200-day moving averages are bearish.
The On-Balance-Volume (OBV) line is close to its December and early June lows suggesting that sellers of FDX have been more aggressive even after its long decline.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in bearish territory with the two moving averages narrowing towards another turn to the downside.
In this weekly bar chart of FDX, below, we can see prices below the declining 40-week moving average line. The twin lows at $150 might be a double bottom pattern but rally since the second low does not instill any confidence in a new uptrend beginning.
The weekly OBV line shows a recent uptick but it is not leading the way. The weekly MACD oscillator looks like it gave a brief cover shorts crossover.
In this Point and Figure chart of FDX, below, we can see an upside price target of $194-$195.
Bottom line strategy: I don't think the bar is set too high for the earnings of FDX so it probably makes it easier to rally. Aggressive traders who can afford a sell stop below $150 could consider the long side of FDX.