At last week’s lows shares of FedEx were down 43% from its Oct. 2018 highs.

FDX is showing signs of a bottom. The stock blew out a very solid triple bottom shortly after its huge post earnings breakdown(9/18). FDX fell another $12.00 after the major support band near $150.00 was broken. The stock now appears to have reached downside exhaustion and with today’s lift, is working on its third straight gain. A close back below $138.50 would violate last week’s lows sending a clear warning sign that more basing will be needed. Until then we regard the recent price action as constructive.

We are long FDX in some managed accounts.