High Consolidation Pattern in XPO Logistics
XPO Logistics has calmly sat above its old highs for the last four months, and now the chart may be poised for a run.
First, notice the series of higher lows since January 29. Also notice how quickly it’s rebounded from drops – similar to CSX.
Second, XPO’s 21-day exponential moving average (EMA) has risen above its 50-day simple moving average (SMA). This is a potential sign of intermediate-term momentum turning more bullish.
Third, the 100-day SMA has snuck up from below to provide support. In this way, it also resembles CSX.
Finally, a look further back to 2018 shows a double-top around $115.50, followed by a drop of more than 50 percent. XPO has consolidated above that level for the last four months, a potential sign of old resistance becoming new support.
Sector trends could also favor XPO because it provides shipping services. That places it in the Transportation industry, which has broadly outperformed the S&P 500 this year as investors look for the economy to rebound from the coronavirus pandemic.
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First, notice the series of higher lows since January 29. Also notice how quickly it’s rebounded from drops – similar to CSX.
Second, XPO’s 21-day exponential moving average (EMA) has risen above its 50-day simple moving average (SMA). This is a potential sign of intermediate-term momentum turning more bullish.
Third, the 100-day SMA has snuck up from below to provide support. In this way, it also resembles CSX.
Finally, a look further back to 2018 shows a double-top around $115.50, followed by a drop of more than 50 percent. XPO has consolidated above that level for the last four months, a potential sign of old resistance becoming new support.
Sector trends could also favor XPO because it provides shipping services. That places it in the Transportation industry, which has broadly outperformed the S&P 500 this year as investors look for the economy to rebound from the coronavirus pandemic.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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