Two trades to watch: EUR/GBP ahead of BoE FedEx Q2 results
Fiona Cincotta December 17, 2020 8:36 AM
BoE playing second fiddle to Brexit optimism could see the bear take EUR/GBP lower FedEx has been a covid winner can it scale to a fresh all time high post earnings?
EUR/GBP tests 90.00 ahead of BoE, Brexit
• Brexit talks appear to move in the right direction
• No policy changes expected from BoE
• Negative interest rate talk could dampen GBP demand
FedEx share price to rise post earnings ?
• Q2 results due after the bell
• EPS $4.01 on $19.5 billion expected
• Volumes rose 25% & 31% in May & August quarters amid rising ecommerce
• Near term outlook strong, could vaccine rollout see demand decline?
After a slow recovery in the share price from the mid-March low, the recovery in the share price has picked up the stocks now trades up 99% year to date, the majority of which came after July’s earning report.
The stock shot through its previous all time high of $275 reached in April 2018 and continued powering higher to an all time of $305 on 9th December. The price has since just eased lower and currently trades at 288, it remains above its 50 & 100 day sma, although is just testing its 20 day sma just so far lacks follow through.
The RSI holds its positive trend (albeit mild), is in bullish territory and its pointing northwards suggesting more upside could be on the cards.
Immediate resistance can be seen 290 20 sma prior to 305 all time high. A break through here could bring 310 into focus.
On the downside support is seen at 50 sma 280. The 50 sma is well respected and has held as a support since mid -May. A break through this level would be significant and would negate the current bullish trend opening the door to deeper losses to 255 November low.
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