Expedia Inc. (EXPE) gapped higher last week. The volume was heavier than "normal" or average but not enough to keep prices soaring so EXPE is pulling back into the gap. Should traders be looking to go long on this pullback? Let's take a look at the charts and indicators. We haven't looked at the charts since late October.
In this updated daily bar chart of EXPE, below, we can see that prices have filled roughly half of the gap that was made. EXPE is above the rising 50-day moving average line and the still declining 200-day line. Earlier this month the 50-day line crossed the 200-day line for a bullish golden cross. This signal came well off the February low but it can still be useful if EXPE continues to trend higher. The daily On-Balance-Volume (OBV) line continues to improve from its February nadir. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly bar chart of EXPE, below, we lose the price gap. Prices are above the still bearish 40-week moving average line. The weekly OBV line is bullish and the weekly MACD oscillator recently moved above the zero line for an outright go long signal.
In this Point and Figure chart of EXPE, below, we can see that prices met an upside price target of $137. This does not mean that EXPE should be sold but it does suggest a period of some sideways price action before renewed gains.
Bottom line: Should traders buy this pullback into the gap? YES. Risk below $124 and look for longer-term gains to the $155-$160 area or the 2017 highs.