Clear consolidation ahead of earnings. Up or Down?

Taking a look at FedEx as clear consolidation is taking place ahead of its earnings call tomorrow. The stock’s shares closed last week at around $253.70 a share, with the price trying to move above the resistance of $254.58 but failing to close above it. The earnings outcome could lead to a breakout in either direction here from this area of consolidation, which is outlined by the white channel. A break and close above the resistance of $254.58 would shift the focus to the next key resistance point of $268.33 (outlined by the red trendline). On the other hand, a breakout below the support of $242.94 may spark a sell-off towards the lows of 2024, where the support sits around $234.46 (green trendline). Based on the technical indicators, the bias seems to be on the side of the bulls as the MACD is positive and the RSI has now risen into a neutral position (51). However, as the technicals are just an indication of recent price momentum, influential events such as earnings can overshadow the latest momentum forming a trend reversal/sell-off.