FedEx (FDX) - Get Report has been above a "golden cross" on its daily chart since April 25, 2016, when the stock closed at $165.56. Just following the guideline that when the 50-day simple moving average rises above the 200-day simple moving average, significant gains lie ahead. That's been the case as the stock set its all-time intraday high of $216.96 on Friday, and is trading to another new high pre-market.

Even before this "golden cross" formed on the daily chart, FedEx tested its "reversion to the mean" on its weekly chart between Jan. 15, 2016 and Feb. 26, 2016 when the 200-week simple moving average was $132.12. By my interpretation, the 200-week simple moving average is the "reversion to the mean" and when a stock declines to that level is an opportunity to buy the stock longer term.

These formations show how investors can maintain core long positions just by following the patterns on technical charts. In addition, my proprietary analytics provide value levels at which to add to long positions on weakness, and risky levels at which to reduce long positions on strength. Let's look at the charts for FedEx.

The Daily Chart for FedEx

Image placeholder title

Courtesy of MetaStock Xenith

FedEx has been trading above a golden cross since April 25, 2016, when the 50-day simple moving average shown in blue rose above the 200-day simple moving average shown in green. The stock closed at $107.73 that day. As the chart shows, momentum traders had the opportunity to add to positions on weakness to the 200-day SMA between June 24, 2016 and July 7, when the average was $151.86. The golden cross remains in play as FedEx set its all-time intraday high of $216.96 on Friday.

The Weekly Chart for FedEx

Image placeholder title

Courtesy of MetaStock Xenith

The weekly chart for FedEx is positive but overbought with the stock above its five-week modified moving average (in red) at $202.26. The 200-week simple moving average or "reversion to the mean" (in green) is $160.54. Notice the buying opportunity mentioned above between the week of Jan. 15, 2016 and the week of Feb. 26, 2016 when the average was $132.12. The 12x3x3 weekly slow stochastic reading ended last week at 81.97 moving above the overbought threshold of 80.00.

Current Strategy: Buy weakness to my annual pivot of $200.41. The stock was above this key level when the company reported better than expected earnings on June 20. Reduce holdings on strength to my semiannual risky level of $221.83.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.