Many analysts like to read charts, putting the pricing behavior of stocks or markets on paper and trading based on the patterns. Such “technical analysis” is derided by those who look at fundamentals, but sometimes it can keep traders from getting in front of a moving train.

Take the example of Fedex (NYSE:FDX) on Tuesday, the Memphis-based package delivery company. Early in the week chartists noticed that the stock had entered a “death cross.”

The Death Cross Says Sell – What Is A Death Cross?

This happens when the 200-day moving average of a stock’s price falls below its 50-day moving average. When the long-term trend (and a 200-day average represents a year of trading) crosses the shorter-term trend (and a 50-day average represents a quarter-year of trading) it is read as a bearish signal for the stock. The same pattern, achieved by the Dow Jones average on August 13, heralded a correction the market is only now beginning to recover from.

Well, miracle of miracles, on Wednesday Fedex announced earnings that missed street estimates, earning $692 million or $2.42 per share on revenues of $12.3 billion, against estimates of $2.44. Margins were actually higher than a year ago, at 9.3%. The total net income was up 6% from a year ago, when it came in at $653 million, $2.26/share.

Still, a miss is a miss, and the chartists congratulated themselves that they had predicted it. Expect the FedEx stock to be under strong selling pressure for some time. Analyst estimates for FedEx earnings also indicate that they’re expecting weakness going forward as well. Apparently,FedEx plans to raise shipping rates next year, but how that pans out for them remains to be seen.