Watch These FedEx Price Levels as Stock Slides After Logistics Giant Cuts Outlook

FedEx (FDX) shares traded sharply lower Friday after the logistics giant trimmed its full-year outlook amid soft demand and uncertainty over the potential impact of the Trump administration’s tariffs in the industrial sector.

During the shipper’s earnings call, CEO Raj Subramaniam said demand weakness continued to pressure higher-margin business-to-business volumes, adding that fewer shipments and lower weights in the company’s freight business compressed results. In December, the transportation bellwether announced plans to spin off its Freight division.

FedEx shares had fallen 12% since the start of the year as of Thursday’s close and 5% lower over the past 12 months, in part, weighed down by concerns that competition for market share with rival United Parcel Service (UPS) could lead to a price war amid a backdrop of economic uncertainty.

Below, we take a closer look at FedEx’s weekly chart and use technical analysis to identify major price levels worth watching for now.

Ascending Channel Breakdown

FedEx shares broke down below the lower trendline of an 18-month ascending channel in early February, with the price continuing to trend lower ahead of the company’s earnings report.

More recently, selling in the stock slowed near the closely watched 200-week moving average, though the relative strength index (RSI) continues to indicate weak price momentum with a reading below the 50 threshold.

Let’s identify several major support and resistance levels on FedEx’s chart that investors may be monitoring.

Major Support Levels to Monitor

The first lower level to monitor sits around $223. The shares could find support in this area near a trendline that links the prominent October 2021 trough with the March 2022 countertrend high and May 2023 pullback low.

The bulls’ inability to defend this important level opens the door for a drop to the psychological $200 level. Bargain hunters may seek entry points in this region near the May 2022 swing low.

Key Resistance Levels to Watch

During upswings in the stock, investors should initially watch the $267 level. This area, currently just below the ascending channel’s lower trendline and 50-week moving average, may provide overhead resistance near a horizontal line that links a range of price action on the chart extending back to the January 2022 swing high.

A more significant recovery effort could see FedEx shares revisit the $300 level. Investors who have purchased the stock at lower prices may look for profit-taking opportunities in this location near a series of peaks that formed on the chart between late 2020 and November.

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As of the date this article was written, the author does not own any of the above securities.