Expedia started rallying last summer, but now some traders may think the travel stock is turning lower.
The first pattern on today’s chart is the drop between late February and early April. EXPE retraced about half that decline by early May before stalling. It also hit potential resistance at the March 28 weekly closing price of $168.10. Those points may confirm a new downtrend has begun.
Second, the recent bounce could be interpreted as a bearish flag.
Third, the 50-day simple moving average (SMA) had a “death cross” below the 200-day SMA early last week. That could also be consistent with a new downtrend.
Short-term signals are potentially negative as well. MACD just turned lower and the 8-day exponential moving average (EMA) is nearing a potential cross below the 21-day EMA.
Finally, you have the behavior around earnings. Quarterly results propelled EXPE higher in August, November and February. The last set of numbers on May 8 triggered selling. Are fundamentals weakening?
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Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
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TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
The first pattern on today’s chart is the drop between late February and early April. EXPE retraced about half that decline by early May before stalling. It also hit potential resistance at the March 28 weekly closing price of $168.10. Those points may confirm a new downtrend has begun.
Second, the recent bounce could be interpreted as a bearish flag.
Third, the 50-day simple moving average (SMA) had a “death cross” below the 200-day SMA early last week. That could also be consistent with a new downtrend.
Short-term signals are potentially negative as well. MACD just turned lower and the 8-day exponential moving average (EMA) is nearing a potential cross below the 21-day EMA.
Finally, you have the behavior around earnings. Quarterly results propelled EXPE higher in August, November and February. The last set of numbers on May 8 triggered selling. Are fundamentals weakening?
Check out TradingView's The Leap competition sponsored by TradeStation.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.