XPO Logistics (XPO) : "I think XPO is a great company and will be worth even more after the spinoff," Jim Cramer told a caller during the "Lightning Round" segment of Mad Money Tuesday.
Let's check out the charts and indicators of XPO.
In this daily bar chart of XPO, below, we can see that prices have doubled in the past 12 months as XPO has been trending higher. The slopes of the 50-day and 200-day moving averages are positive. Tests of the 50-day line have been buying opportunities.
The On-Balance-Volume (OBV) line has been in an uptrend with only small temporary dips. A rising OBV line tells us that buyers of XPO have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator has been weakening since early May but is still above the zero line.
In this weekly Japanese candlestick chart of XPO, below, we can see that prices have been in an uptrend from the March 2020 pandemic low. Currently the chart is not showing us any top reversal patterns. XPO has nearly tripled from its nadir. The slope of the 40-week moving average line is positive.
The weekly OBV line has improved from its March 2020 low but it has also stalled in the past six weeks. The MACD oscillator is crossing to the downside for a take profit sell signal.
In this daily Point and Figure chart of XPO, below, we can see a potential downside price target in the $126 area.
In this weekly Point and Figure chart of XPO, below, we can see that the software is projecting a $175 price target.
Bottom line strategy: In our May 4 review of XPO where we wrote that "Understanding spin-offs and such is above my pay grade, but the sense I get from the charts and indicators is that XPO could stall in the weeks ahead."
Prices have been trading sideways but aggressive traders could probe the long side of XPO here risking to $135. The $175 area is our projected price target.
