Shares of FedEx (FDX) plunged about 20% in pre-market action FRiday as traders react to the transportation giant pulling their 2023 forward guidance amid a surprise profit slump. Let's check on the charts.
In the daily bar chart of FDX, below, we can see that the stock has been trying to stabilize around the $200-$190 area since March. However, the opening of FDX trading Friday is going to see a price gap well below this tentative support zone. FDX is trading below the declining 50-day and the weak 200-day moving average lines.
The On-Balance-Volume (OBV) line does not offer a positive view as it has been in a decline since January telling us that sellers of FDX have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is bearish as it was already below the zero line.