FedEx Completes Wave 4 Pullback At 38.2% Fibonacci

The FedEx Corporation (FDX) has made a bullish bounce as expected in our previous analysis. But the rebound was even stronger than expected because price action broke above the top.

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Price Charts and Technical Analysis

(Click on image to enlarge)

The FDX daily chart is showing a strong uptrend with all the moving averages bullishly aligned:

  • The previous price swing is a wave 3 (purple) of wave 3 (red) due to its steep angle.
  • The pullback was indeed a wave 4 (purple) which bounced at the 144 ema.
  • The current higher high is expected to be part of a wave 5 (purple) of wave 3 (red).
  • Within the wave 5 (purple), price action is building a 5 wave (pink) pattern. The current push up seems to be a wave 3 (pink).
  • The current pullback could be a wave 4 (pink) as long as price action stays above the 50% Fibonacci level.
  • A break below the 50% Fib places it on hold (orange circle) and a deeper break invalidates it (red circle).
  • The main targets are located at the -27.2% Fibonacci level at $340 and the -61.8% Fibonacci level at $365.

On the 4 hour chart, price action could be testing the support trend line (green):

  • A bullish bounce took place at the 38.2% Fibonacci level, which makes a wave 4 (green) likely.
  • A bullish breakout above the 21 ema high could confirm the uptrend continuation (green arrows).
  • Price action should stay above the 50% Fibonacci level if this is indeed a wave 4 (green). 
  • A bullish bounce (blue arrow) could take place at the 50% Fib as well if price action gets there.

(Click on image to enlarge)

 

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. On average around 80% of retail investor accounts loose money when trading with high ...

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