4 Trade Ideas for FedEx: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

FedEx, $FDX, comes into the week breaking above a short term resistance. This comes after an earlier breakout above the 38.2% retracement of the post pandemic move higher and continues the trend higher that started with the gap down in September last year. The Bollinger Bands® are open higher to allow further upside. The RSI is strong in the bullish zone with the MACD positive and slowly rising.

There is resistance at 254.50 and 265 from the beginning of 2022 then 271 and 282 before 288 from 2021. Support lower comes at 250 and 246 then 237.50 and 232. Short interest is low at 1.3%. The stock pays a dividend with an annual yield of 2.01% and has traded ex-dividend since June 9th. The company is expected to report earnings next on September 20th.

The July options chain shows biggest open interest at the 232.50 put and building from 260 down to a peak at 230 on the call side. In the August chain it is spread from 250 to 180 on the put side and from 230 to 280 on the call side. The September chain is just getting started. The October chain is the first to cover the next earnings report and has open interest from 240 to 185, biggest at 200 on the put side. On the call side it is focused at 240.

FedEx, Ticker: $FDX

Trade Idea 1: Buy the stock on a move over 253.50 with a stop at 246.

Trade Idea 2: Buy the stock on a move over 253.50 and add an August 250/240 Put Spread ($3.30) while selling the September 270 Calls ($3.10).

Trade Idea 3: Buy the August/October 260 Call Calendar ($6.55) while selling the September 230 Puts ($2.81).

Trade Idea 4: Buy the October 230/260/280 Call Spread Risk Reversal ($1.05).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the first week of July in the books, noted that equity markets showed some weariness, stalling in their moves higher and giving back minor amounts.

Elsewhere look for Gold to continue its downtrend while Crude Oil consolidates in a broad range. The US Dollar Index looks to move lower in consolidation while US Treasuries drop and may be resuming their downtrend. The Shanghai Composite looks to continue the intermediate trend lower while Emerging Markets consolidate.

The Volatility Index looks to remain very low and stable making the path easier for equity markets to the upside. Their charts look strong on the longer timeframe with the SPY and QQQ leading over the IWM. On the shorter timeframe both the QQQ and SPY are now in a short term consolidation with the IWM in a wider consolidation holding over the prior range. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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