FedEx Corporation stock has been one of the brightest stars of the post-crisis years. In March 2009, it plunged to $34. In December 2014, it was like you were looking at a different stock, because FedEx was trading close to $184. On the chart below you will see how this awesome 150-dollar rally looks like through the perspective of the Elliott Wave Principle.
FedEx costs $166 per share right now, but the wave structure suggest it could get even more expensive soon. The theory states, that stock market trends develop in five-wave sequences, called impulses. It seems wave 5 of (3) to the upside should begin soon, once wave 4 is over. Let’s take a closer look at this fourth wave and try to determine what is left of it.
In 1930s, Ralph Nelson Elliott discovered, that except for the triangle correction, market retracements consist of three waves. As visible, FedEx’s wave 4 fits into this description. It appears to be a three-wave A-B-C correction, where wave C is still unfolding. This means that wave “v” of C of 4 could take FedEx down, probably to $162. After that, if this is the correct count, the bulls are likely to return and lead prices close to the $190 mark.
