FedEx Corp (FDX) will be reporting its latest quarterly results tomorrow after the closing bell. In late-August, FDX printed a bullish engulfing candle and it's been moving straight up ever since. It's now running into both gap and price resistance, however, so it needs a catalyst. Will earnings be the catalyst?
The short-term technical picture is improving, but the long-term remains very cloudy. United Parcel Service (UPS) has been the much better option in this space, closing last week near its 52 week high. I believe tomorrow's earnings report holds the key. If FDX can beat both its revenue and EPS estimates and it receives a positive reaction from Wall Street, then the worst is likely behind it. Relative strength is telling us that things are improving at FDX, but to still be careful.
I prefer UPS over FDX until the latter can prove otherwise through fundamental and technical improvement.
Note:
Yesterday represented my final day as Sr. Technical Analyst at StockCharts.com and marks my return to EarningsBeats.com as its Chief Market Strategist. I will continue to provide analysis here in my Trading Places blog, though the content will be more topic specific like today's. My regular daily market recap, market outlook, sector/industry watch, historical tendencies, earnings information, economic reports, etc. will be included in my Daily Market Report (DMR) that will be provided to members of EarningsBeats.com. I plan to highlight excellent trading opportunities every single day. In today's DMR, I'll release my latest Monday Setups, identifying excellent reward to risk trading opportunities. I'd love your continuing support as I begin this next journey. There are two separate and distinct ways to support me at EarningsBeats.com:
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The past 4 1/2 years here at StockCharts.com has been quite a ride and I thank every one of you for your support over the years. I hope you'll continue to ride with me!
Tom
