As of 02/03/2023
  Indus: 33,926 -127.93 -0.4%  
  Trans: 15,518 -122.49 -0.8%  
  Utils: 954 -22.84 -2.3%  
  Nasdaq: 12,007 -193.87 -1.6%  
  S&P 500: 4,136 -43.28 -1.0%  
YTD
 +2.3%  
 +15.9%  
-1.4%  
 +14.7%  
 +7.7%  
  Targets    Overview: 02/01/2023  
  Up arrow35,100 or 33,150 by 02/15/2023
  Up arrow16,000 or 14,350 by 02/15/2023
  Up arrow1,040 or 950 by 02/15/2023
  Up arrow12,400 or 11,000 by 02/15/2023
  Up arrow4,250 or 3,900 by 02/15/2023
As of 02/03/2023
  Indus: 33,926 -127.93 -0.4%  
  Trans: 15,518 -122.49 -0.8%  
  Utils: 954 -22.84 -2.3%  
  Nasdaq: 12,007 -193.87 -1.6%  
  S&P 500: 4,136 -43.28 -1.0%  
YTD
 +2.3%  
 +15.9%  
-1.4%  
 +14.7%  
 +7.7%  
  Targets    Overview: 02/01/2023  
  Up arrow35,100 or 33,150 by 02/15/2023
  Up arrow16,000 or 14,350 by 02/15/2023
  Up arrow1,040 or 950 by 02/15/2023
  Up arrow12,400 or 11,000 by 02/15/2023
  Up arrow4,250 or 3,900 by 02/15/2023

Bulkowski's FedEx (FDX 4) Trading Quiz

Released 11/29/2021.

FDX: Quiz

Below is a slider quiz to test your trading ability. Captions appear below the pictures for guidance, so be sure to scroll down far enough to read them.

 

1 / 3
chart pattern

What chart patterns can you find? Look for the following (if you find others, great!): 3 flags, Adam & Eve double bottom, ascending triangle, descending triangle, head-and-shoulders top, broadening formation right-angled and descending.

The answer is on the next slide.
2 / 3
chart pattern

Price drops below the head-and-shoulders top neckline (in this case, the signal is really at the price of the right-armpit low because of the down-sloping neckline. I show that with a thin, horizontal red line). It's a sell signal.

Question 1: Do you buy or sell short the stock?
Question 2: What is your price target?
Question 3: What is your stop loss price?
See the next slide for answers.
3 / 3
chart pattern

Answer 1 (buy?): Sell or short the stock because the breakout is downward.

Answer 2 (target?): Measure the height of the head-and-shoulders (from head to neckline directly below) and project the result downward from the breakout price. But where's the breakout price? With down-sloping necklines, if they are steep enough, you won't have price piercing the neckline. So, I use a close below the right armpit as the sell signal. The target in this example would be: (peak) 78.05 - 71.18 (neckline) = height = 6.87. (RS low) 70.07 - 6.87 = 63.20 is the price target. Price reaches the target just 51% of the time, so be conservative in your estimates.

Answer 3 (stop?): Volatility is 1.93. Adding this to the intraday high of 70.34 gives a stop of 72.27. That's the closest the stop should be. That places it in the middle of the flag that appears between the head and right shoulder. For safety, I'd probably place it above the right shoulder. That would mean a potential loss of 8%, which is reasonable.

This shows what happened to the stock. It continued lower until finding support at the triple bottom, 64.84 at its lowest. So, the stock missed the 63.20 target but with 51% meeting the target, that should not be a surprise.

The End.

See Also

 
Top of page
 

 

Support this site! Clicking any of the books (below) takes you to Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notices: "As an Amazon Associate I earn from qualifying purchases." Paid links).

My novels:  Remember Me book Bumper's Story book Head's Law book
My stock market books:  Chart Patterns: After the Buy Getting Started in Chart Patterns 2nd edition book Trading Basics book Fundamental Analysis and Position Trading book Swing and Day Trading book Encyclopedia of Chart Patterns 3rd Edition book

Copyright © 2005-2023 by Thomas N. Bulkowski. All rights reserved.
Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.
Home Advertise Contact Donate Links Privacy/Disclaimer