We reviewed the charts of FedEx Corp. (FDX) in the closing days of December and wrote that, "I assume traders took profits on FDX longs at $270 or higher. Stand aside as the charts look toppy and we could correct down into the $225-$210 area in the weeks ahead." Well, prices have broken the late October/early November lows so another look at the charts is in order.
In the updated daily bar chart of FDX, below, we can see that the shares have made new lows for the move down. The slope of the 50-day moving average line is negative and the daily On-Balance-Volume (OBV) line has slipped to a new low too. A weak OBV line happens when the trading volume on down days is heavier than on up days, telling us that sellers of FDX are more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator has crossed below the zero line for an outright sell signal.