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FedEx May Deliver Some Quick Profits

by Chris Johnson and Jon Lewis 09/09/09

Don't look now, but FedEx (FDX) is trading at a nine-month high. In fact, the stock has more than doubled off its March low. That bodes well for the economic recovery, as FedEx is considered a bellwether for the health of commerce.

A look at the technicals shows the stock appears to be emerging from some stickiness around the $70 level. That's where the shares peaked in early August and where they found tough going last week.

But with the help of support from the 20-day moving average, the shares are once again on the move.

We see the next area of possible resistance at $75, the strike of peak call open interest in the September series (heavy call strikes often define tops).

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