The share price of XPO Logistics ( XPO) has declined sharply in recent days as traders reacted to the company's recent earnings numbers last week and a downgrade by Morgan Stanley on Monday.
Let's check the condition of the charts and indicators.
In this daily bar chart of XPO, below, I can see prices have quickly declined below the 50-day moving average line but are still above the 200-day line.
The On-Balance-Volume (OBV) line moved up from October to a high in February. The OBV line has turned lower this month and signals a shift from aggressive buying to aggressive selling.
The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal. The MACD oscillator has also made a bearish divergence when compared to the price action which made a higher high while the indicator made a lower high. A bearish divergence can foreshadow further price weakness. 
In this weekly Japanese candlestick chart of XPO, below, I see some bearish signals. Notice the two upper shadows near $45? Traders were rejecting those highs. The large red candle (bearish) is close to making a bearish engulfing pattern.
The weekly OBV line just made a turn lower. The MACD oscillator is narrowing but still above the zero line.
In this daily Point and Figure chart of XPO, below, I can see a potential downside price target in the $25 area.
In this weekly Point and Figure chart of XPO, below, I see a bullish price target in the $69 area.
Bottom line strategy: Longer-term XPO could trade much higher but in the present we have to deal with charts that suggest further weakness is possible. Stand aside for now.
