When to Move on FedEx

FedEx (FDX) has underperformed its domestic and international shipping competitor United Parcel Service (UPS) by 13% since its 2009 generational low -- 7% over the last year, and 14%, year-to-date. While UPS is making another historic high today, the lagging stock price of FDX has stabilized at a key support level and may be preparing to make a catch-up move.

The weekly chart shows the advance in both stocks off the October 2011 low. The subsequent price action was similar until a weak earnings report last March took FDX shares 14% lower over the next month, returning them to the 38% retracement level of their 2011 low and 2012 high and below the 200-day moving average. The stabilization process has allowed time for the technical indicators to readjust, with the relative strength indicator turning back up near its centerline and stochastics making a bullish crossover from an oversold condition. Overall volume is improving and money flow remains positive....137 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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