FedEx
FedEx shares are facing support from a major horizontal line around $270 or near an upward trend line at $250. The company’s shares dropped 11% an hour before the bell after the company lowered its sales forecasts due to weak demand from customers. In its second quarter earnings report released after the bell on Tuesday, the company stated that it now expects a low single-digit percentage decline in revenue for the full fiscal year, compared to its previous forecast of flat sales year-over-year. Wall Street had anticipated a sales decline of less than 1% for the current fiscal year. The company noted that weak macroeconomic conditions will continue to impact delivery demand in the coming months, but it highlighted that operating income will improve thanks to recent cost-cutting initiatives. Since the drop in the third quarter of 2022, FedEx shares have risen steadily, except for a significant bounce back to the 200-day moving average in October. If there is an earnings-driven sell-off today, keep an eye on the major horizontal line around $270 and the upward trend line currently near the $250 level as potential support areas on the chart.
Chewy, Inc.
Chewy shares rose 9.2% on Tuesday after the online food and pet supplies store received an upgrade from Jefferies. Analysts from the investment bank noted they see the stock as a “tail-wagging” opportunity given the growth and margin prospects for the pet seller. They specifically highlighted opportunities in pet health, ads-supported, and private label brands. The bank also pointed out that margins should remain healthy as the seller targets high-income individuals who are less impacted by the current inflationary environment. Jefferies set a price target of $27 per share, suggesting a 14% increase from Tuesday’s closing price of $23.68. Chewy has spent most of 2023 in a downward trend, except for a brief rise in the summer to the 200-day moving average. Since the end of November, trading volumes have increased significantly, with yesterday’s upgrade providing the stock with enough momentum to break past last month’s high. If the price continues to rise, keep an eye on the $31 level – a zone on the chart that may face resistance from a horizontal trend line dating back to September 2022.
Affirm Holdings, Inc.
Affirm’s shares jumped by over 15% on Tuesday after the “buy now, pay later” company announced it had expanded its partnership with retail giant Walmart (WMT). The company stated that monthly payment options would be available at self-checkout machines in over 4,500 Walmart stores across the United States, including vision centers and automotive trade-in services. The announcement came one day after Morgan Stanley downgraded the stock due to valuation concerns. Since the beginning of the year, the stock has risen by more than 400%. Affirm’s stock price has been trending upward since it crossed above the 50-day moving average over the 200-day moving average to form a golden cross pattern in early July. Recently, trading volumes have also increased above average, indicating participation from large market players. However, investors should monitor how the price reacts to a major horizontal line at the $48.50 level, which dates back to mid-2021.
Source: https://www.investopedia.com/3-charts-for-investors-to-watch-wednesday-fedex-chewy-affirm-8418439
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