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 http://www.fibtimer.com Stock Strategy has no position in FedEx Corp.
Disclosure: The www.fibtimer.com Stock Strategy has no position in FedEx Corp.