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New Rally High for FedEx Corp (NYSE: FDX)

|Includes: FedEx Corporation (FDX)

December 9, 2009

FedEx Corp (NYSE: FDX) gave guidance for earnings of $1.10 a share for the fiscal second quarter, exceeding its previous forecast of 95 cents a share. The news prompted a 2.7% rally on Tuesday, December 8.

The advance propelled share prices above the 61.8% retracement and resistance level for the entire 2008 bear market decline. This forecasts a run to at least the next resistance level.

For FedEx, the next resistance level and target for this rally is at $92.00 a share. This was the September 16, 2008 bear market rally high.

If FedEx breaks above that level, look for $98.65 a share, the May 1, 2008 bear market rally high.

The $115 to $120 level was where FedEx topped out before the bear market began. FedEx needs to top the two levels discussed above. If it does, a run to the old highs is possible.

The Stock Strategy has no position in FedEx Corp.

Disclosure: The Stock Strategy has no position in FedEx Corp.