Look for XPO Logistics to Keep on Truckin'

Charts suggest XPO's uptrend is likely to continue into the early part of the second quarter.

XPO Logistics Inc. (XPO) is due to report its fourth-quarter numbers after the close Monday. Jim Cramer was bullish on the supply chain company during his Mad Money program Friday night. Analysts seem to be looking for an EPS estimate of $1.01 and a revenue number around $4.23 billion. Let's see what the charts and technical indicators suggest.

In the daily bar chart of XPO, below, we can see that prices have been trading higher since late March. Prices are above the rising 50-day moving average line and the rising 200-day moving average line. A bullish golden cross of these two popular moving averages can be seen back in the middle of August.

The daily trading volume has relatively light but the math-driven On-Balance-Volume (OBV) line has been rising since late March and tells us that buyers of XPO have been more aggressive for many months.

The trend-following Moving Average Convergence Divergence (MACD) oscillator has stayed above the zero line for much of the time since July and currently looks like it can turn higher for a fresh outright go long signal

 

In the weekly bar chart of XPO, below, we can see a mostly bullish picture. Prices are in an uptrend and above the rising 40-week moving average line.

 

Trading volume is very light and the weekly OBV line is very flat or neutral. A long-term balance between buyers and sellers is unusual and we should see a breakout in the near future. My "bet" would be for renewed strength. The MACD oscillator is in a bullish configuration above the zero line.  

 

 

 

In this daily Point and Figure chart of XPO, below, we can see that prices are in an uptrend with a potential longer-term price target in the $134 area. A trade at $87.32 is needed to begin to weaken this chart. 

 

 

Bottom-line strategy: XPO gapped higher in the middle of January on heavy volume. Prices have not declined to attempt to fill much of the gap so I take that as a sign of strength as traders and investors are paying up to get long. I do not have any insights about earnings but the charts suggest the uptrend is likely to continue into the early part of the second quarter. 

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