Expeditors International of Washington (EXPD) last was reviewed in March. At that time we were bullish, noting that "we can see a good-sized base pattern and a breakout at $52.57. Prices could dip a little more in the short run, but aggressive traders looking to get long EXPD or add to longs in EXPD should buy a close above $57.50. This chart shows a possible longer-term price target of around $74." Let's look at some updated charts and indicators and suggest a strategy for the next few months.
In this daily bar chart of EXPD, below, we can see that prices dipped in April and May, but the longer-term uptrend reasserted itself and prices have rallied to $66, still short of our $74 price target. EXPD is trading above the rising 50-day moving average line after a number of tests in November. The 200-day moving average line is rising and was tested in early November.
The On-Balance-Volume (OBV) has risen the past 12 months but has moved up and down with the price action. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since September, which is bullish, but recently the two lines of this indicator have begun to narrow toward a possible take-profits signal.
We can see a bullish setup in this weekly chart of EXPD, below. Prices are above the rising 40-week moving average line and the line has been tested several times over the past two years. The weekly OBV line is pointed up and tells us that buyers of EXPD on this time frame have been aggressive. The weekly MACD oscillator has been above the zero line for the past two years and is still in a bullish mode.
In this Point and Figure chart, below, we can see the uptrend from early 2016 and a $70.70 price target.
Bottom line: EXPD made a quick, sharp rally in late November and prices are consolidating/correcting those gains. EXPD is likely to continue its two-year rally with gains to $71 and then $74.
