Stock of the Day: FedEx

The overall structure here is bearish. The downtrend began in March, when the price broke a key horizontal support at $244. That breakdown triggered a sharp sell-off, pushing the price below $200.

Since early April, we’ve seen a bullish correction, but that move now appears to be exhausted. The correction took the form of a rising wedge, clearly defined with red trendlines. This wedge has now been broken to the downside.

What’s more, the correction stalled exactly at the previous $244 support, now acting as resistance — a textbook rejection. That rejection was followed by a breakout below the lower wedge line, confirming the end of the correction phase and the resumption of the larger downtrend.

What this means for traders:

• The breakout from the wedge to the downside confirms a valid sell signal.
   

• As long as the price stays below the $244 resistance, downside momentum is likely to continue.
   

• A move back above $244 would neutralize this setup, but for now, sentiment remains decidedly bearish.