FedEx Corporation: Technical Analysis Contradicts Fundamental Picture

Echo To All submits: From a technical perspective, FedEx Corporation (FDX) is looking toward the upside. But FDX reports on Wednesday, and fundamentally speaking they have not been doing so hot. But the recently strong retail numbers make me think about them. A review of their chart indicates the SMAs are generally moving upward, and the MACD support a bullish run.

In my opinion, if no catalyst is present (to change the fundamental picture of FDX) it could trend to 116. However, FDX reports on Wednesday, and if they cannot meet the current expectations, the stock will be in a lot of hurt. If they meet or beat, the benefit is to the upside.

If you want a play here, playing the FDX stock is a good idea. Or buy the 115 Oct Calls, along with the 110 July Puts (for the short term protection). (Or if you are looking for income, look to sell some Oct Puts, and Sell July Calls -for protection… but play the options only if you know what you are doing.)