FedEx Corp. (FDX) is due to report their latest earnings on Tuesday. Let's check out the charts and indicators ahead of those fundamental numbers.
In this daily bar chart of FDX, below, we can see that prices have been in a downtrend the past 12 months - lower highs and lower lows. The last low was in late December but the bounce off that low was not particularly robust. Prices are barely above the rising 50-day moving average line and the slower-to-react 200-day line is still bearish. The trading volume from late December did not expand as prices improved which suggests that new buyers have not appeared at these lower levels.
The On-Balance-Volume (OBV) line shows weakness into the December low and only a very modest recovery - certainly not showing strong and aggressive buying.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is pretty much neutral as it sits on the zero line. This indicator should follow prices up or down from here.
In this weekly bar chart of FDX, below, we can see a two-year uptrend followed by a top pattern and more recently a down trend. Prices are below the declining/bearish 40-week moving average line.
The weekly OBV line shows a weakening pattern from last August and the MACD oscillator is well below the zero line.
In this Point and Figure chart of FDX, below, we can see both the downtrend and a potential downside price target of $151 - or a retest of the December low.
Bottom line strategy: The bounce from the late December low looks weak and lacks signs of aggressive buying. FDX could always surprise on the upside but right now it looks like prices could rollover and retest the December lows in the $160-$150 area.
