FedEx shares rebound on Friday, company to spend $3.2 billion on pay raise, hub expansion in the United States

According to a statement by FedEx Corporation (FDX) last Friday, it intends to spend at least $3.2 billion on pension funding, capital investment as well as on pay raise, as it takes advantage of the recently-signed into law reform of the US tax system.

FedEx shares closed higher for the first time in the past five trading sessions on Friday. The stock edged up 0.30% ($0.81) to $268.85, after touching an intraday low at $265.69, or a price level not seen since January 10th ($263.62).

In the week ended on January 28th the shares of the package delivery company lost 1.99% of their market value compared to a week ago, which marked the first drop out of four weeks and also the largest one since the week ended on November 12th 2017.

The stock has extended its advance to 7.74% so far during the current month, following a 7.81% surge in December. The latter has been a fifth straight month of gains.

For the entire past year, the shares of the NYSE-listed company gained 34.02% following another 24.97% surge in 2016.

FedEx said that as much as $1.5 billion would be contributed to an employee pension plan, while another $1.5 billion would be invested in the expansion of its Indianapolis hub during the upcoming seven years. The company also plans to renovate its Memphis SuperHub.

Meanwhile, at least $200 million would be contributed to higher compensation for employees, with two-thirds of that amount being expected to favor hourly workers.

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding FedEx Corporation’s stock price, have a median target of $285.00, with a high estimate of $318.00 and a low estimate of $240.00. The median estimate is a 6.01% surge compared to the closing price of $268.85 on January 26th.

The same media also reported that 20 out of 28 surveyed investment analysts had rated FedEx Corporation’s stock as “Buy”, while 5 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the FedEx stock are presented as follows:

R1 – $269.15
R2 – $269.46
R3 (Range Resistance – Sell) – $269.76
R4 (Long Breakout) – $270.67
R5 (Breakout Target 1) – $271.73
R6 (Breakout Target 2) – $272.20

S1 – $268.55
S2 – $268.24
S3 (Range Support – Buy) – $267.94
S4 (Short Breakout) – $267.03
S5 (Breakout Target 1) – $265.97
S6 (Breakout Target 2) – $265.50

By using the traditional method of calculation, the weekly levels of importance for FedEx Corporation (FDX) are presented as follows:

Central Pivot Point – $269.55
R1 – $273.40
R2 – $277.96
R3 – $281.81
R4 – $285.67

S1 – $264.99
S2 – $261.14
S3 – $256.58
S4 – $252.03