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 – annotations by

At 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. Technical Briefing: 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. 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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