Stock Of The Day: FedEx Delivers An Important Trading Lesson

Core Insights - The article discusses the significance of support and resistance levels in financial markets, particularly highlighting FedEx Corporation as a case study [1][3] - It explains how price levels can shift from being support to resistance and vice versa, driven by trader psychology such as seller's remorse and buyer's remorse [1][3] Group 1: Support and Resistance Dynamics - The $289 level for FedEx was initially a resistance level in late March, which later converted into a support level by late June [1] - The $255.70 level served as resistance in June before becoming a support level in September [1] - The $276 level transitioned from a support level in August to a resistance level in early October [3] Group 2: Trader Psychology - Seller's remorse occurs when traders who sold at resistance regret their decision if the price trends higher, leading them to place buy orders when the price returns to that level [3] - Buyer’s remorse happens when traders who bought at support decide to sell if the price breaks below that level, creating resistance when the price rallies back [3] - Understanding these psychological factors helps traders make informed decisions on where to place buy and sell orders, potentially leading to profits [3]