Expedia Group, which trades under the ticker (EXPE) , was discussed by our own Jim Cramer on his Mad Money show last evening. Jim noted that the stock is trading at just 12 times earnings with a 16% long-term growth rate and he would be a buyer here and on weakness.
Let's grab our passport and some sunscreen and take a look at the charts this morning.
(For more on Expedia, see Forgive and Forget -- and Buy: Cramer's 'Mad Money' Recap)
We looked at the charts of EXPE the other week and recommended: "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."
In this daily bar chart of EXPE, below, we can see that prices have pulled back down into the late July upside price gap. Volume has been light which suggests that there has not been heavy profit-taking or liquidation.
The 50-day moving average line is still rising and the 200-day moving average line is flattening now.
The daily On-Balance-Volume (OBV) line only shows a shallow dip while the Moving Average Convergence Divergence (MACD) oscillator has narrowed and could cross or not in the days ahead - it all depends on the price action.
This weekly bar chart of EXPE, below, shows a little improvement over the past several sessions. The 40-week moving average line is now showing a positive slope.
The weekly OBV line is holding its own positive track while the MACD oscillator is above the zero line for an outright go long signal.
In this Point and Figure chart of EXPE, below, the July gap and all gaps disappear. EXPE has pulled back (look for the "8" on the chart) and met a price target of $137. A rally to $140 will be a small breakout and open the way to further gains on this chart.
Bottom line strategy: Traders who bought the pullback into the gap should hold those position and raise sell stop protect to $127 from below $124. Aggressive traders could buy more EXPE on strength above $140. The $150-$155 area is our next intermediate-term price target.
