$FDX and the importance of not trying to catch a falling stock

2020年3月8日

I decided to go with the weekly chart because the daily chart has become so tricky and noisy. I have seen so many people trying to convince other to buy FedEx even when the stock has an amazing strength in the downside. However, Fedex is a company with a long history and that makes most of people that it has to go up soon or later, well that's not the best argument to buy FedEx, just remember that General Electric is now around -70% from the ATH, 19 years ago. So it's so much better if you just wait for a real important support because buying right now is a bad idea, the general market is falling, FedEx is not a stock with realative strength, it is a stock damaged before the coronavirus.
Let's go the important points of possible entry and with very defined points of exit. The first important buying point is 120.91- 120.30 a support since May 2006 and tested many times Feb 2007, July 2007 and January 2016. Your possible next entry will be 112.24 with a stop loss at 99.75 wich will be your last point of a possible buying. Another good sign are the divergencies of MACD and RSI.Once again you should follow the price and entry and exit points very defined and not go trying to catch it just because is down 50%, take into account that the market is in a correction and with risk to get into a bear market, and if the market keeps with this volatility, what is least convenient for you is to be blocked with an action that is unable to increase in price and with a high exposure to decrease its value.