Bellwether transport stock Fedex completed a double top reversal with a break through the neckline at $88. Retracement found resistance at $90 and reversal below the original neckline at $88 would signal a primary down-trend. Follow-through below Tuesday’s low would confirm. Bearish divergence on 13-week Twiggs Money Flow warns of strong selling pressure. A primary down-trend on Fedex normally warns of slowing activity in the broader economy.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.
Nice example of divergence. The range from the low between the tops to the top is likely to be doubled from the top going down, do you agree giving a target on the downside of of around 79?
Thanks for sharing this. James
Yes. A target of 79.
the only thing that prevents economy from a deep crash are the rampant capital owners because their money has to be investet at all cost. The situation today has nothing to do with the real situation of the economy worldwide, because patient is in intensive care and global monopoly has to come to an end mathematically. As sooner the failure comes better bearable for us all, and my trading target for fedex is a strong sell. Every pullback caused by demented bulls shoud be interpreted as a good opportunity to add short positions.