Watch These FedEx Levels as Stock Jumps on Plans for Freight Business Spinoff | Global News Avenue

FedEx (FDX) on Thursday, after the shipping giant announced plans Spin off freight business As a standalone public company, this belies a lowered full-year outlook.

analysts believe spin offFedEx expects to be completed within the next 18 months and could generate up to $20 billion in revenue shareholder value It improved profits by streamlining operations and seeing the company merge its separate express and ground divisions.

Separately, late Thursday, the company lowered its full-year outlook for fiscal 2025, noting that the situation remains challenging, in part due to weak demand from enterprise customers. However, the shipper said December volumes far exceeded expectations.

As of Thursday’s close, FedEx shares have risen 9% since the beginning of the year, lagging the broader market by a wide margin. S&P 500 Index The return over the same period was 23%. The stock rose nearly 9% to $300 in after-hours trading.

Below, we take a closer look at FedEx’s chart and apply technical analysis to identify important later stagesinformation Price levels to watch out for.

rising channel in action

FedEx stock price fluctuates in an orderly manner rising channel A chart pattern consisting of two upward sloping trend lines drawn above and below a price series has been established since last July support and resistance level,

Recently, the stock has found buying interest near the closely watched 50 and 50 indexes. 200-day moving averageand trading volume The highest level since late September was recorded on Thursday.

Let’s identify two key management areas on the FedEx chart to consider the potential for follow-on buying and point out several important support levels to monitor. retracement.

Key overhead areas to focus on

The first expense level worth looking at is around $305. The stock price may encounter resistance in the area near the trend line connecting the countertrend. peak August and September formed with November on the chart high swing.

Predict a benefit If the target is above an ascending channel, investors can use the measure move technique, also known by chart watchers as Measurement principle.

This is accomplished by calculating the distance between the two trend lines of the pattern point And add that amount to the top trendline of the channel. For example, we add $50 to $320 with a projected target of $370, which is about 34% above Thursday’s closing price and investors may decide Take profits.

Important support levels to monitor

period callbackInvestors should first focus on the $278 level, which is currently slightly above the 200-day moving average. While the stock will open well above this area on Friday, a retest of this area could attract buying interest near the troughs formed on the charts in August, September, and December.

Finally, a break below this level could see FedEx stock retest lower support near $255. Long-term investors may seek buy and hold This area is an opportunity near the multi-month trendline that connects a series of comparable price points on the chart dating back to last July.

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As of the date of this writing, the author did not own any of the securities mentioned.