Fedex $FDX has been pulling back up after a sharp December sell-off. However, price action suggests a potential bearish continuation mode ahead. FDX Daily Chart(click to enlarge)Flag Pattern and Bearish Signs:- The first sign that bears are probably still in charge is that the rally since late December has been choppy and tentative compared to the sharp December sell-off.- In fact, the rally since December is essentially a flag pattern. - It also doesn't take a rocket scientist to recognize that the overall price structure is still bearish.- Furthermore, the RSI has remained under 60, which is a sign that the bearish momentum is intact.$173.70 Pivot:- Price is breaking out of the flag pattern, but we need to see a bearish break instead of a sideways break to call for a bearish continuation. - The February low is so far at the $173.70 support pivot. If price breaks below this pivot, FDX will likely be in a bearish continuation mode.- If you go down to the 1-hour chart, you also see that there is a head and shoulders pattern, with a neckline at $173.70.- Let's see if price breaks down this support next week. If so, we should not be surprised if price dips to $150 before mid-year.