FedEx Corp. declined from $115.38 (U.S.) in 2007 (not shown) to $34.02 in 2009 (A) followed by a recovery rally to $97.75 (B) and a horizontal trading range mostly between $69 and $98 (B-C). This price action produced a bullish technical pattern known as a V-Extended formation (dotted lines). The recent move confirmed the breakout (D). FedEx is currently overbought and a better entry point may occur near $94-$95, but only a decline below about $90 would be negative.
Point & Figure measurements provide initial targets of $114 and $124. The V-Extended pattern (dotted lines) supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
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