Here’s your trade on FedEx (FDX) (January 22, 2015)
FDX UPS FDX SP-500 FDX
Fedex ( NYSE:FDX ) has been in consolidation for a while but within an uptrend. I’ve looked at these before, I like Fedex ( NYSE:FDX ) over UPS ( NYSE:UPS ), though they’re both going up, you look at UPS ( NYSE:UPS ), big breakout today, I don’t think Fedex ( NYSE:FDX ) is too far behind.
I’ll be honest, because I always am, I like Fedex ( NYSE:FDX ) more because it’s not unionized. Those of you that belong to a union don’t take offense to that, I was actually, yes it’s true, once a teamster. But I think non-unionized companies tend to be able to run a little bit more efficiently. Again, don’t take offense, I used to be one of you guys, I’m just not any more.
I don’t know if this is part of the reason why the stock’s up or if it’s just basically because the market’s up, but they voted down attempts to unionize in a couple of districts or whatever back East. I don’t know if that’s a part of it but it is a part of my analysis to be perfectly blunt with you. With that said look at the patterns here, again prolonged uptrend, big uptrend here, but you get these little consolidations, another consolidation, choppy little thing here, and then now what are we just about to get, a move to the upside.
I think you’ve got two trades here, and by the way, they don’t announce earnings until the 18th of March. The 18th of March, it’s the 22nd of January, meaning this has two months to trade before earnings. With the market still in consolidation but it’s up at the upper right-hand corner of the chart, that’s the winner’s circle as opposed to the penalty box, lower right. When I look at this I see an uptrend that’s just begging to be continued.
I would suggest two possible trades here. First of all, if the stock pulls back to say the 50-day moving average, that’s about 175.00, that’s a buy. On the other hand if it doesn’t do that but it instead starts moving above this last high here of, we’ll call it 184.00, if it starts moving up above 184.00 that’s when you want to buy it. So the pullback to a low is just that, it’s a pullback buy within a stock that’s trending up nicely, a move above the high. This is just a breakout buy, it’s a momentum trade, and you’ve just have to know how you’re trading it.
But look at this, MACD, moving average convergence/divergence, that’s these two squiggly lines here, came down below the mid-line, which is the indication of whether the stock is in an uptrend or in a downtrend; it came down below, crossing, and now it’s moving up. So this is actually kind of giving you a little bit of a heads-up.
At the same time the ADX, which is something that I taught to members in a webinar a few weeks ago, very well received I might add. If you become a member you get to go back and look at that; that’s a shameless plug on my part because it was my webinar and I’m proud of it because I know what it was.
Anyway, it might be confusing to you even you guys that use ADX, you might look at it and go like, “What are you talking about?” But this is actually a pretty decent entry right here because of the way this is setting up. This is a longer trend indicator, but I think this can do some damage to the upside, so I think it’s a pretty good trade right now.
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