- FedEx corporation (FDX) made a strong bullish bounce at the 144 ema. Price has also broken above the 21 ema zone. Plus an uptrend channel is now established.
- The FDX daily chart had a strong impulse up. This has been labeled as wave 3 (pink). Let’s review what’s going right now.
- On the 4 hour chart, price action seems to have completed 5 waves up (blue) and then followed by an ABC correction (blue). This could be part of a wave 1-2 or a-b.
What are the main targets for this chart? And what kind of price patterns do we expect?
Price charts and technical analysis
The FDX daily chart had a strong impulse up. This has been labeled as wave 3 (pink). Let’s review what’s going right now:
- The current pullback completed at the 144 ema zone and 38.2% Fibonacci retracement level (green box).
- This retrace could either complete the wave 4 (pink) or be part of a larger ABC (grey) correction in wave 4’ (pink).
- In both cases price action is expected to reach the previous top at $305 (red line).
- A bearish bounce (orange arrow) could indicate a retest of the previous bottom within a larger wave 4’ (pink).
- A bull flag chart pattern (grey arrows), however, could indicate that the bulls remain in control and indicate a bullish breakout.
- The main target area is the previous top at $305. A break above the top should aim at the -27.2% Fib target at $350 followed by the -61.8% Fib target at $400. Although the first Fib target zone at $350 could start another wave 4 pattern.
On the 4 hour chart, price action seems to have completed 5 waves up (blue) and then followed by an ABC correction (blue). This could be part of a wave 1-2 or a-b.
- The continuous higher highs and higher lows confirms an uptrend channel.
- Any pullback towards the previous candle highs and 21 ema zone should create support (green arrows) at around $280.
- A deeper pullback places the uptrend scenario on hold (yellow/red circles).
- Price is not expected to decline below $264 or otherwise the uptrend is in trouble.
