FedEx Corp Is Still Sinking, Here’s The Only Trade Level I Could Find

Last week, FedEx Corp (NYSE:FDX) plunged lower after reporting earnings. The company gave a pessimistic view of the global economy and cut its guidance. They also cited political uncertainty and trade tensions for the weakness. Earlier this year, the company announced that they would not renew a contract with Amazon (NASDAQ:AMZN) and this could also be weighing on the bottom line.

FedEx stock is now trading at new multi-year lows. The stock peaked in January 2018 at $274.66 a share. Since that high in the stock, the shares have dropped lower by 46.0 percent and currently trade around the $146.00 area. Traders should note that the stock has now broken below its 100-month moving average. This is a sign of weakness and likely signaling more selling pressure ahead for the transport giant. The only level that would get me interested in the stock would be around the $125.00 level. This is where there is a major retrace support area from the 2009 lows and a pivot support level from January 2016. This is a solid area for a long side trade in FedEx Corp stock. Until then, I would likely stay away from the stock until the chart changes or tell me something different.

Nicholas Santiago

InTheMoneyStocks