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 piercing over resistance. The move Friday broke higher but fell back below that resistance slightly at the end of the day. The Bollinger Bands® continued to point higher. It has an RSI in the bullish zone with the MACD positive and kinking to move higher. There is resistance at 338.50 and 342. Support lower is at 332.50 and 325. Short interest is low at 1.7%. The stock pays a dividend with an annual yield of 1.44% and will trade ex-dividend beginning June 22nd.

The company is expected to report earnings next on June 23rd. The June options chain shows biggest open interest at 350 on the put side and at the 330 strike on the call side. In the July chain the biggest open interest below is at 300 but it is large at 370 on the put side as well. On the call side it is biggest at 430 and then 370. In the September chain open interest is biggest at 330 below on the put side and at 420 above on the call side.

FedEx, Ticker: $FDX

Trade Idea 1: Buy the stock on a move over 343 with a stop at 330.

Trade Idea 2: Buy the stock on a move over 343 and add a July 330/300 Put Spread ($10.15) while also selling the September 380 Calls ($9.65).

Trade Idea 3: Buy the July/September 360 Call Calendar ($9.35) and sell the July 310 Puts ($6.10).

Trade Idea 4: Buy the September 300/350/380 Call Spread Risk Reversal ($2.90).

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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 heading into the FOMC meeting and June options expiration, saw equity markets appearing to have stopped the damage with small caps leading at all-time highs.

Elsewhere, look for Gold to continue a short term downtrend while Crude Oil settles under $90/bbl, near support and a change of character to a downtrend. The US Dollar Index looks to drift lower near the top of the range while US Treasuries continue to hold over support in consolidation after avoiding a shift in character. The Shanghai Composite looks to continue the short term trend to the downside while Emerging Markets look to recover from the pull back in their uptrend.

The Volatility Index looks to continue lower in the normal zone, after a pop to test the recent range, giving a bit of a tailwind to equities. The charts of the SPY, the QQQ and the IWM continue to look extremely strong on the longer timeframe after the reset out of overbought conditions. On the shorter timeframe the SPY and the QQQ still have some work left in the short term bounce to prove the pullback is over. The IWM, however, is looking strong, with an all-time high to end the week. 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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