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FedEx's Share Price: The Present vs the Future vs the... Elliott Wave Pattern?

by Nico Isaac
Updated: June 16, 2020

I'm Nico Isaac and THIS is Chart of the Day

FedEx's Share Price: The Present vs the Future vs the... Elliott Wave Pattern?

This chart of FedEx Corporation shows that after weeks of trending sideways, prices broke out to the upside in mid-May and soared to a four-month high thru June 10th.

200615 - NI

This is an example of how any stock in any sector can go from sleepy to sparkling in a flash. The question is, could investors and traders have been ready for the sudden trend change?

That depends. In the days just before FDX turned up, analysis from mainstream experts were stuck between a bullish future

-- AND --

xa bearish present.

Bullish prospects came with the May 18 announcement that FedEx had partnered with Microsoft to create a digitally enhanced shipping network that could "transform commerce." Said one May 18 Barron's, "FedEX, for its part, is showing investors it won't go down to Amazon without a fight."

But before you could say same-day delivery, the mood surrounding FedEx soured with this May 20 Yahoo Finance! article, which showed a raft of negative data regarding the company's present prospects, such as:

  • A 54% decline in year-over-year earnings
  • A 5% decline in revenue
  • A Zacks Rank of #4 (Sell), just above the agency's worst rank #5 (Strong Sell)
  • And, operating margins slashed in half to a new decade low of 2.4%

Not to mention the lingering effects of a nation-wide May Day strike by FedEx workers, to protest dangerous working conditions, and an outbreak of COVID-19 in a Kansas-based FedEx facility

With a strong case made for both bulls and bears, FedEx traders would've been well -- stuck in transit with no delivery information available at this time.

But on May 20, our Trader's Classroom editor Jeffrey Kennedy showed a version of this chart of FDX, which forecast prices to climb into the 140-150 area within the next two weeks. There, Jeffrey said quote:

"I like this as a very nice A-B-C [pattern]. It's simple. It's straightforward. This... looks good. I'm looking up to 140-150."

200615 - NI2

And, Jeffrey's near-term bullish outlook unfolded right on time.

When it comes to identifying high-confidence trade set-ups in real-time, our Traders Classroom looks to the one place that matters most: the Elliott wave pattern. See below to get started.

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