FedEx Corp (FDX) just released back-to-back bad news!
Can the stock recover from its current levels?
Let’s take a look at the daily chart:
FedEx Corporation (FDX): Daily
In case you missed it, FedEx just delivered not one, but at least TWO disappointing news to investors.
First, the company scrapped the earnings forecasts that it issued less than three months ago.
FedEx now projects that the company earned just $3.44 per share in the three months ended August 31, which is a lot lower than the $5.14 EPS figure that analysts were expecting.
Apparently, the FedEx Express business was particularly hurt by growth challenges in Europe and slower-than-expected momentum in Asia.
It also expects to earn an adjusted $2.75 per share in the three months to November when markets initially estimated a $5.48 figure during the time period. Yikes!
As if that’s not disappointing enough, FedEx also announced that it would close over 90 office locations and 5 corporate offices to aggressively cut costs. Double yikes!
How low will FDX go?
The stock has been trading inside a long-term range after falling from the $320 mark in mid-2021.
It’s now trading closer to the $200 zone that marks the range bottom on the daily time frame.
Bears who would like to trade any downside momentum from the news might want to wait for a clear break of the range support before targeting lower inflection points.
Meanwhile, FDX buyers who want to take advantage of the trip to the technical support can start scaling in at current levels or wait for a bit of buying momentum before aiming for areas of interest near $225.50 or $250.00.
Just keep in mind that the stock probably won’t see sustained buying as long as markets are still worrying about the Fed’s interest rate increases and slower global growth.
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