As of 09/27/2022
  Indus: 29,135 -125.82 -0.4%  
  Trans: 12,153 +153.95 +1.3%  
  Utils: 934 -19.25 -2.0%  
  Nasdaq: 10,830 +26.58 +0.2%  
  S&P 500: 3,647 -7.75 -0.2%  
YTD
-19.8%  
-26.2%  
-4.7%  
-30.8%  
-23.5%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow990 or 900 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22
As of 09/27/2022
  Indus: 29,135 -125.82 -0.4%  
  Trans: 12,153 +153.95 +1.3%  
  Utils: 934 -19.25 -2.0%  
  Nasdaq: 10,830 +26.58 +0.2%  
  S&P 500: 3,647 -7.75 -0.2%  
YTD
-19.8%  
-26.2%  
-4.7%  
-30.8%  
-23.5%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow990 or 900 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22

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

 
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My novels:  Bedroom to Boardroom book Remember Me book Bumper's Story book Head's Law book
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