FedEx Stock Rallies After Beating Earnings – Cycles Suggest Bottom Is In

This morning FedEx reported earnings. The company reported $2.53 of EPS on $17.4B in revenue, which beat consensus estimates of $1.52 on $16.4B of revenue.

FedEx U.S. residential volume was 72% for Q4 versus 56% from last year.

Residential volume is less profitable for FedEx as compared to business volume given the additional mileage required to deliver shipments.

The company did note that business-to-business shipments were starting to show signs of recovery.

At 1:30 PM ET, the stock is up over 12% on the trading day.

Let’s review our weekly cycle analysis.

FedEx (FDX) Weekly Chart

fedex stock fdx price forecast bullish analysis market cycles higher month july image

At askSlim we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.

askSlim Technical Briefing:

fedex stock fdx analyst bullish forecast outlook indicators month july higher image

The weekly cycle analysis suggests that FDX has likely forming an important intermediate-term bottom. The next projected intermediate-term low is due between 7/20 – 8/24. Weekly momentum is positive.

On the upside, there are prior cycle high resistances from 168.37  178.50.

On the downside, there are rising intermediate-term supports from 145.96  135.02. For the bears to regain control of the intermediate-term, we would need to see a weekly close back below 117.32.
askSlim Sum of the Evidence:

FDX is in a bullish weekly pattern with positive momentum. Under these conditions, we would expect any downside in FDX to be limited to the rising intermediate-term supports beginning at 146.

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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