Fedex Corp. (FDX): Weekly Bullish Reciprocal AB=CD

The chart of Fedex Corp. illustrated in Figure 3.2 exemplifies the concept of a Bullish Reciprocal AB=CD, as the AB leg was the first corrective move within a longer-term bullish channel on the weekly chart. The stock reversed sharply after testing the equivalent CD leg that was approximately 15 points. The completion of the Reciprocal AB=CD was projected at 44.50, and it was complemented by the 0.618 weekly reciprocal retracement at 43.95. It is important to note that the reciprocal retracement was established by the prior 1.618 AB projection, and it triggered the corresponding completion of the CD leg at the 0.618 retracement.

Figure 3.2.

This weekly chart clearly exemplifies the ideal structure of the Reciprocal AB=CD pattern. Again, it is important to look for patterns that utilize a clear prior corrective move early within the newly established bullish trend. FedEx possessed a sharp pattern on this weekly chart over the course of two years. The strong reversal precisely at the PRZ was a clear indication that the new bullish trend was about to resume. Patterns such as these form on weekly, daily, and intra-day charts in the same fashion.