Chart of the Week: Expedia
This week we’re gonna be focused in on travel name Expedia. This is the name we’ve done in the past. This chart is looking really good.
Kinda hard to find some good tech charts lately in this sector. But this is one that really took off after the earnings came out, pulled back a little bit, and now it’s moving right back up again. Let’s take a look at this chart.
Look at this nice uptrend. Higher highs, higher lows, our textbook definition of an uptrend. And look, it went past this mini-uptrend here, which came out after earnings in the early part of November. It gapped higher and followed through, came back down. Nearly tested that 50 day moving average on lower turnover, which is what you like to see.
And it has moved substantially higher. Well more than 25% off the lows, from about $235 up to about $287. That’s about $50, about 20%. And just recently moved higher on heavier turnover, which is what you like to see when a stock breaks out.
We had good relative strength moving up, too, with the stock, higher highs and higher lows.
Decent volume. We’ve also had a buy signal on the MACD over here. Check out the nice volume trends over here – very bullish.
And listen, you know what? I think the stock’s gonna at least run up to $310. Perhaps a little bit higher than that.
We are nearly overbought right now so we could be ready for a pullback. If we pullback to say that $275-280 level, this would be where I want to start adding some calls to a position. So if we do pull back a little bit there…
But if we keep going, listen, you know what? Ride the trend, ride the momentum as long as it’s still very strong.
So that’s Expedia; EXPE is the symbol. Thanks so much for watching everyone.
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