A major sell-side firm has upgraded their fundamental opinion of XPO Logistics ( XPO) to an "overweight." Let's check out the charts to see if the fundamentals and the technicals are on the same road.
In the daily bar chart of XPO, below, we can see that the shares have made a small base in the $45 area the past eight weeks. Prices have been testing the underside of the declining 50-day moving average line in recent weeks and now it looks like a break of the 50-day line is possible.
The daily volume pattern does not show us a pattern of increasing volume in the past few weeks and the On-Balance-Volume (OBV) line is still pointed down. Increased turnover and a rise in the OBV line would be a welcomed development.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is moving up to the zero line and this is a minor positive. 
In the weekly Japanese candlestick chart of XPO, below, we can see that XPO is holding at the 50% retracement point of the $90 high -- around $45. Prices are below the declining 40-week moving average line.
The weekly OBV line looks like it is trying to hold. There are some small lower shadows but no bottom reversal pattern just yet.
In this daily Point and Figure chart of XPO, below, we can see a potential upside price target in the $65 area.
In this weekly Point and Figure chart of XPO, below, we can see a potential downside price target in the $25 area. A trade at $52.57 could improve the chart picture.
Bottom-line strategy: XPO has not made an important nor a large base pattern but it is trying. We could see the shares rally from here but because the base is limited the upside should also be limited.
