Shares of FedEx have fallen sharply in the SIA S&P 100 Index Report after previously rising to the top of the matrix report during the summer. The SIA Matrix Position chart shows a significant decline in relative strength, indicating that something significant appears to be afoot with FedEx, as investors are quickly exiting their positions. Currently, shares are positioned at #83 in the Unfavored zone of the report, having dropped 64 spots in just the past month. FedEx’s recent performance includes a monthly decline of -10.49% and a quarterly decline of -10.75%, although the year-to-date performance remains positive at +4.70%. In comparison, the S&P 100 Index benchmark has increased by +3.08% over the past month and +8.24% over the past quarter.
To gain perspective on FedEx’s trading activities, we turn to the point and figure chart. Earlier in the summer, this chart signaled a bullish trend, but that now appears to have been a bull trap, increasing the risks associated with the position, especially in light of the SIA relative strength reversal. A point and figure bull trap is a situation in technical analysis where a stock appears to be breaking out to the upside (indicating a bullish trend) but then quickly reverses and moves downward instead. This apparent bull trap has now been followed by the completion of a bearish triangle, which is a point and figure bearish chart pattern marked by a consolidation period of lower highs and lower lows that signals a continuation of a downward trend in a stock's price, often followed by a bearish breakdown. As such, investors should be mindful of any further breakdowns beyond support levels at $250.05, $231.01, and the long-term positive trend level at $185.79, while resistance levels are at $317.12 and $343.26. FedEx shares carry an SIA SMAX score of 5 out of a possible 10, suggesting that better investment opportunities exist in other asset classes. Investors should remain cautious given the current market dynamics and technical indicators at play.
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