Expedia (EXPE) has been correcting lower the past two months. The selling does not look to be that aggressive, so it can make the job of chart reading more difficult. Why? A stock can decline from its own weight and that can mean few investors have changed their positions. A rally back to the late-July high, for example, may become a selling opportunity or it can become a location to add to longs. Decisions, decisions.
Let's review our charts and indicators to see if we need travel insurance.
In this daily bar chart of EXPE, above, we can see prices are testing the declining 50-day moving average line. Prices have stopped short of the late-August highs, keeping the pattern of lower highs intact. Prices are above the rising 200-day moving average line but EXPE is a lot closer to the line than it was at the end of July. The On-Balance-Volume (OBV) line topped in July and weakened into early September. The OBV line has come up slightly in September but it is not breaking out on the upside -- something the OBV can sometimes do.
The Moving Average Convergence Divergence (MACD) oscillator signaled a cover-shorts buy in the middle of September, but it has yet to cross above the zero line for an outright go-long signal.
In this weekly bar chart of EXPE, above, we can see prices are above the rising 40-week moving average line. The weekly OBV line has been pointed down the past three months. The weekly MACD oscillator crossed to the downside at the end of August for a take-profits sell signal.
In this Point and Figure chart of EXPE, above, we can see a correction. There is a $156.75 upside price target that stops short of the July peak.
Bottom line: With the absence of aggressive buying (a strongly rising OBV line), I would look for EXPE to drift lower in the near term. A close below $140 will weaken the chart picture and a close above $153 will strengthen it.