Is Fedex A Buy?
FedEx Corporation FDX (NYSE) is an American multinational delivery services company headquartered in Memphis, Tennessee. The name “FedEx” is a syllabic abbreviation of the name of the company’s original air division, Federal Express, which was used from 1973 until 2000. The stock has been rallying since the COVID crisis began. Investors and analysts alike are concerned with just how justified the value of the company is and where the stock may be headed in the future. However recent news has seen sentiment increase dramatically. We’ll be spending some time looking at the technical indicators to help us understand where FedEx might be heading, and provide a FedEx stock price analysis.
Moving Average (MA)
Again I wanted to show you all the power of simple moving averages. A classic among economists it averages the price of the stock over the last period of days and displays that against the graph. The idea is that if the price line crosses the moving average line from below its indicating a buy signal. Vise versa for a sell signal.
This is a basic concept and we can improve on it. We can see that the price has penetrated the blue (10 day average) by 29th June and the red (30 day average). In each case indicating buy signals as the price penetrated from below. If we combine the two lines red and blue we can generate a third buy signal. When the shorter period (blue) penetrates the longer period (red) from below a buy signal is formed. We can see the formation of this signal just before June.We can further expand on this by adding different day averages and even more averages to the one graph. This would generate more insights for us.
With all this said it is always important to remember to diversify your investments to ensure that you are less sustainable to market volatility and rapid market movements. Also if you are new to investing make sure you look into trading with a demo account to practice, more information on that can be found here.
Awesome Oscillator (AO)
The Awesome Oscillator likes to live up to its name, sometimes it succeeds. It’s used to measure market momentum and calculates the difference between a 34 period and 5-period simple moving average. The Awesome Oscillator is generally used by analysts to confirm trends or to anticipate possible reversals when the bars cross above and below the 0 line indicating buy and sell signals respectively. As it is in this case, it is reaffirming a buy signal.
As an investor it is so important that we consider all the facts before making a decision because that’s the only way we can ever be sure we can make the right one. However before you can use market insights to better your decision making it’s important first to learn how to trade. Previously we did similar analysis with NVIDIA in order to best understand where the price might head before the stock jumped to where it is now. We also found similar success with PCG anticipating its decline.