The attached Weekly chart of FedEx Corporation shows (enclosed in red) the “Evening Star” bearish Candlestick Reversal Warning Pattern which developed in July 2011. The “Evening Star” usually, but not always, develops at the top of a long price advance. It is characterized by a tall white candle, signifying an “Up” day, followed by a candle which features a small “Real Body” (that is, the price distance between the Open and the Close) signifying a certain degree of indecision, located at or above the top of the tall white candle; and finally a tall black candle, signifying a “Down” day and a reversal of trend from Up to Down.
The bearish implications of this “Evening Star” Candlestick Reversal Warning Pattern were fully borne out by the price decline which immediately followed it, during which the share price of FedEx fell from the High of $98.66 in July 2011 to a Low of $64.07 in early October.
William Kurtz
