FedEx Corporation (FDX) beat earnings per share estimates, on 30 June, and the stock jumped above its 200-day simple moving average at $140.91 on the 1st of July. On the 1st of July was high at $163.65, and since then, the stock has slipped to $153.66 July 6.
The world-the parcel delivery giant has been in recovery mode since trading as low as $88.69 on 17 March. FedEx stock closed on Monday, July 6, at $156.27, up 3.1% year to date, and in the bull market territory at 76.2% above its March 17th low of $88.69. The stock is also in the correction of a territory to 12.5% below its high of $178.50 posted on July 24, 2019.
FedEx is a reasonable price, with a P/E ratio of 16.37 and a dividend yield of 1.67%, according to the trends. The stock has been under a death cross, but that ended with the positive reaction on the earnings. The stock is above its monthly value level of $126.47 and is well below its semi-annual risk level to $212.06.
The daily chart for FedEx
FedEx stock has been under a death cross since August. 8, 2018, when the 50-day simple moving average fell below the 200-day simple moving average. This indicates that lower prices will follow.
Note the possibilities to sell the shares on the strength of the 200-day simple moving average. Sales to this average could have been done on the Sep. 12, 2019; Dec. 13, 2019; and Feb. 12, by 2020. This follow-up to the stock up to its March 17 low of $88.69.
On the rebound, the stock is returned to its 200-day simple moving average, the 5 June. Note the upper ear of the 1st of July on the positive reaction of the profits. The stock is now above its 200-day simple moving average at $140.81 and its monthly report on the plan of the value of $126.47. The stock is well below its semiannual risky level at $212.06.
The weekly chart for FedEx
The weekly chart for FedEx is positive, with above its five-week modified moving average of $139.36. The stock is below its 200-week simple moving average, or the return to the average, at $192.67. The 12 x 3 x 3 weekly slow stochastic reading should rise to 72.26 this week, from 69.28 on 3 July.
Trading strategy: Buy FedEx stock on weakness to its 200-day simple moving average at $140.81 and its monthly report on the plan of the value of $126.47. Reduce the holdings on the strength of its 200-week simple moving average at $192.67 and its semiannual risky level at $212.06.
How to use my value levels and risky levels: The share price closing price on Dec. 31, 2019, has been an entry to my proprietary analytics. The annual levels of to remain on the charts. The level of the month of July was based on the last nine-month period firm, the third quarter was based on the last nine quarterly closes, and the second half by 2020 the level was based on the last nine to the half-year closes. New weekly levels are calculated following the end of each week.
My theory is that nine years of volatility between the farm are to assume all possible bullish or bearish event for the stock are taken into account. To capture the volatility of stock prices, investors should purchase shares of the weakness of a plan, the value and reduce the holdings of the strength to a risky level. A pivot is a level value of the risk level that was violated in its time horizon. Hubs act as magnets that have a high likelihood to be re-tested prior to their time horizon expires.
How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings has been based on the backtesting of many methods of reading the stock prices of the momentum with the objective of finding the combination that resulted in the least number of false signals. I’ve been following the stock market crash of 1987, so I was happy with the results of more than 30 years.
The stochastic reading covers the duration of 12 weeks, high, low, and close for the stock. There is a row of calculation of the difference between the highest and the lowest compared to the farm. These levels are modified for a fast reading and slow reading, and I found that the slow playback will work best.
The stochastic reading scales between 00.00 and 100.00 with readings above 80.00 considered as overbought and readings below 20.00 regarded as oversold. A reading above 90.00 is considered to be a “swell parabolic bubble” of the training, which is usually followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered to be “too cheap to ignore,” which is usually followed by a gain of 10% to 20% over the next three to five months.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.