Technical Update - Fedex taking out key levels after earnings. Could drop even further before finding support
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Fedex released shocking earnings pre-market and opened 22% lower. The share has now lost all gains since 2020. Currently trading around 168 there which is the 1.618 projection of the May-June correction. The Bearish Engulfing candle last week of June strongly indicated top and reversal of the correction and lower levels were very likely to follow.
After closing below 210 and the 200 weekly SMA there was not much holding the stock. Now there is no strong support before around 127.50.
Weekly RSI has broken below its lower rising trendline and is closing in on its lowest value from Q3 2021. It would be no surprise if it makes a new low on the RSI indicating lower levels on the share price.
That scenario is likely to materialise over the next couple of weeks if Fedex closes this week below 168 and RSI below its trendline.
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