XPO Logistics (XPO) has been weak on the charts for some time now and JPMorgan just lowered their price target on the shipping and logistics firm. Let's check and see what the charts say.
In this daily bar chart of XPO, below, we can see that prices have been weak since August. XPO is testing the early March low now after a failed rally to the underside of the declining 200-day moving average line.
The On-Balance-Volume (OBV) line is close to its own new low for the move down, telling us that sellers of the stock are being more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is crossing below the zero line now for a fresh outright sell signal.
In this weekly Japanese candlestick chart of XPO, below, we can see how a price bounce failed at the underside of the declining 40-week average line. The weekly candle is very likely going to be a new low close for the move down.
The OBV line is turning down again and the MACD oscillator is negative.
In this daily Point and Figure chart of XPO, below, we can see a downside price target of $41.
In this weekly Point and Figure chart of XPO, below, we used a five box reversal filter. Don't shoot the messenger but the target here is $15.
In this chart of the Dow Jones Transportation Average, below, (XPO is not a component of the average), we can see a bearish picture. Prices are poised to test/break the September low and they trade below the 200-day moving average line. XPO is not the only transportation name that is weak.
Bottom line strategy: The charts of XPO are weak and likely headed lower. Avoid the long side of XPO.
