Overall market weakness and real life events such as trucker protests and more can lead to downside trade set ups. In this case, despite $UPS's strong earnings, most of that move has been given back. With sentiment shifting towards energy, banks and other defensive stocks. Money is coming out of these, otherwise fundamentally strong, businesses.
$FDX has a massive head and shoulders. A smaller one has formed on this right shoulder which can be a trade in and of itself, but for the present I'd like to focus on the larger one.
A head and shoulders is characterized by 3 high peaks, the middle one being the highest of the 3. Traders often enter at a break or retest of the neckline due this being 'confirmation' of the impending downside move. In this chart, we did a fibonacci retracement from the HH (higher high) to the LL (lower low). A clean rejection at the 0.50 fibonacci so far as led to a $36 downside move.
I don't think we're done yet though. I believe we will see at bare minimum: $216 and very possibly even $191.
Hopefully this analysis/breakdown is helpful. Please like and follow!
Warwick, OptionsSwing Analyst
$FDX has a massive head and shoulders. A smaller one has formed on this right shoulder which can be a trade in and of itself, but for the present I'd like to focus on the larger one.
A head and shoulders is characterized by 3 high peaks, the middle one being the highest of the 3. Traders often enter at a break or retest of the neckline due this being 'confirmation' of the impending downside move. In this chart, we did a fibonacci retracement from the HH (higher high) to the LL (lower low). A clean rejection at the 0.50 fibonacci so far as led to a $36 downside move.
I don't think we're done yet though. I believe we will see at bare minimum: $216 and very possibly even $191.
Hopefully this analysis/breakdown is helpful. Please like and follow!
Warwick, OptionsSwing Analyst
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