The Expedia (EXPE) chart demonstrates a lot of technical setups here. If the setup works, this could pay for your next holiday! Let's walk through them. First of all, the SCTR is a little weaker than I would like and needs to hold 50. The early half of 2016 has an SCTR below 50. When the rest of the stocks were rallying, Expedia was a little slow to take off. The crossover of the Full Stochastics back above 20 sets up a nice bounce location. Historically, this looks like a good signal.
The price action is finding support at horizontal support and trend line support. The confluence of both suggests a great place for an entry.
Last week's volume bounce looks very positive, but the price needs to get above the 10 Week Moving Average. This is also a reasonable place to expect a bounce off the momentum trend line on the PPO.
With a lot of support right here, this looks like a nice entry point. A break below the up trend line would be a good exit for a trailing stop.
Good trading,
Greg Schnell, CMT, MFTA.
