Federal Express [FDX] is trending in the news this morning following earnings and a 10% drop yesterday. I don't know if the company blamed interest rates, the trade war with China, a natural lull in the economic cycle, or all 3... Fortunately, we neither listen to nor care about the supposed reasons why. Price behavior will tell us all that we need to know.
Monthly Chart
The monthly chart suggests there's more downside to come as it's formed a Bear Flag. The bottom of that flag (just above $140) is the first level to watch closely. If price breaks that level, the next major support level (arguably more important than $140) is $120.
Weekly Chart
The weekly provides even more clarity. The last candle has yet to close, but it's clear price is looking for the bottom of the flag/support.
Daily Chart
The daily FDX chart just points up the violence of today's drop based on earnings. Expect more of the same today. And no, it doesn't really matter what the Fed does.
Hope it helps...
The Trader
