Will This Leader Continue to Deliver the Upside?

What does the on-balance volume indicator say? October 02, 2020 UNSUBSCRIBE |ARCHIVE WOW, I wish I had known about THIS 10 years ago!! (full story here) No previous experience. Limited free time. And just $200. Yet 90 days later… he retired a millionaire. What did he do? Why don’t more people know about it? And how could you copy his results? I promise you’ll wish you had seen this 10 years ago! You have to see this incredible secret. Will This Leader Continue to Deliver the Upside? Dear Chart of the Day Reader, Today, we’re going to take a look at one of the strongest stocks over the past few months: FedEx Corp. (FDX). FDX is the worldwide leader in logistics and transportation services for commercial and residential clients. The stock has been in a strong uptrend and is currently at yet another all-time high. The question is: Will FDX continue to deliver the upside here… or is it time for a rest? Let’s take a look at the daily chart below for some clues… There’s no denying FDX is in an uptrend, but if we look at the on-balance volume (OBV) indicator (the bottom panel of the chart) we see a divergence. A divergence occurs when price moves in one direction, but an indicator used on the same chart does not confirm the move. OBV is a good indicator to look “under the hood” of a move and see if the horsepower is there to support it. Currently, the OBV is telling us there is no confirmation here with the move to new highs on FDX. This isn’t a sell signal — it’s just a caution signal for the time being. IMPORTANT: Today is the last day I’ll be penning this column, as it’s being absorbed into another publication. It’s been my absolute privilege to write these issues the past few months, and I truly hope you enjoyed reading them. But of course, we’ll go out on a high note… Here is the final dad joke of the week! I told my son 10 jokes to try to make him laugh. Unfortunately, no pun in ten did. Trade Smart, Michael Saul Analyst, Chart of the Day When a power broker gives away a "hot tip"… Last October, a D.C. power broker gave away a hot tip, live on camera… And a man who’s worth $80 billion stops talking long enough to soak it in… That’s probably precious advice you’ll want to hear, don’t you think? Because that’s exactly what happened when Facebook's CEO billionaire sat before Congress for six hours of grueling testimony. Smack in the middle of the session, one of the most powerful Republicans in the House… himself an ex-banker and startup investor… Leaned into the mic and said,“You should read this book…” We couldn’t agree more — click here to learn what he said and more. If you are having trouble receiving your Chart of the Day subscription, you can ensure its arrival in your mailbox by whitelisting Chart of the Day. © 2020 by Chart of the Day. All rights reserved. This newsletter may only be used pursuant to the subscription agreement, and any reproduction, copying or redistribution (electronic or otherwise, including on the World Wide Web), in whole or in part, is strictly prohibited without the express written permission of Laissez Faire Books LLC, 808 Saint Paul Street, Baltimore, MD 21202-2406. To end your Chart of the Day e-mail subscription and associated external offers sent from Chart of the Day, click here to unsubscribe. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. If legal advice or any type of assistance is needed, please seek the services of a competent professional. This material, produced by Chart of the Day, is for informational purposes only. All technical information, instruction, and advice, reflect the beliefs of Chart of the Day and are intended as informational only. Chart of the Day is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Laissez Faire delivering daily email issues and advertisements. Please read our Privacy Statement. EMAIL REFERENCE ID: 401CODED01