June 17, 2010
Shares of Fedex Corp (NYSE: FDX) sold off almost 5% on Wednesday, June 16 after an earnings report that did not meet investors expectations.
Fedex has lost over 20% in the April to May market decline, almost twice the loss realized by the overall market.
With share prices closing on Wednesday at $78.07, Fedex is only a few percent from breaking its correction lows at $76.03. Should Fedex trade below and close below $76.03 in coming days, prices could very well be headed for a test of $71.78 a share.
If we hold here and move higher, look for a close above $83.00 a share to forecast an advance to the $84.42 level.
There does not appear to be a great deal of upward potential for this stock, and the most likely direction in coming weeks is to the downside.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
Disclosure: no positions