Fedex (FDX) announced its latest earnings on June 22nd. The company reported earnings per share of $1.76 compared with the consensus of $1.72. What gave the stock the real boost however was that the management upped its fiscal year 2012 guidance.
On the weekly chart we note that over the past 8.5 months or so FDX has traded in a wide range between roughly $85 and $97. The $97 area has served as a major resistance level dating all the way back to early 2008. Given the most recent earnings announcement FDX might now again be on its way back up to $97 and potentially beyond.
Zooming on the daily chart reveals a few more details:
Note the upside gap from earnings on 6/22. After the early up gap FDX closed the day with a doji candle and yesterday FDX again continued its way higher on increasing volume.
The downtrend that has been in place since early May comes in just around the $92 area, which FDX managed to jump on a closing basis yesterday. This bullish action should have a good chance of continuing.
Given the gap up after earnings this trade should be given enough time to work:
Open long: 92.90 or better, Stop: 89, Target 1: 97, Target 2: 110
