Today, we’re going to take a look at one of the strongest stocks over the past few months: FedEx Corp. (FDX).
FDX is the worldwide leader in logistics and transportation services for commercial and residential clients.
The stock has been in a strong uptrend and is currently at yet another all-time high.
The question is: Will FDX continue to deliver the upside here… or is it time for a rest?
Let’s take a look at the daily chart below for some clues…
There’s no denying FDX is in an uptrend, but if we look at the on-balance volume (OBV) indicator (the bottom panel of the chart) we see a divergence.
A divergence occurs when price moves in one direction, but an indicator used on the same chart does not confirm the move.
OBV is a good indicator to look “under the hood” of a move and see if the horsepower is there to support it. Currently, the OBV is telling us there is no confirmation here with the move to new highs on FDX.
This isn’t a sell signal — it’s just a caution signal for the time being.
IMPORTANT: Today is the last day I’ll be penning this column, as it’s being absorbed into another publication. It’s been my absolute privilege to write these issues the past few months, and I truly hope you enjoyed reading them.
But of course, we’ll go out on a high note…
Here is the final dad joke of the week!
I told my son 10 jokes to try to make him laugh.
Unfortunately, no pun in ten did.
Analyst, Chart of the Day