EXPD breaks back below 20-day moving average
Expeditors International of Washington Inc. (EXPD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EXPD ended the week 0.07% higher at 73.39 after losing $0.79 (-1.06%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EXPD as at Feb 14, 2020):
Friday's trading range has been $1.57 (2.11%), that's slightly above the last trading month's daily average range of $1.41. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for EXPD.
Two candlestick patterns are matching today's price action, the Black Candle and the Dark Cloud Cover which are both known as bearish patterns.
Prices are trading close to the key technical support level at 72.87 (S1). Expeditors International closed back below the 20-day moving average at 73.73. When this moving average was crossed below the last time on January 17th, EXPD lost -3.64% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 72.87 where further sell stops could get triggered. With prices trading close to this year's low at 72.35, downside momentum might accelerate should the stock break out to new lows for the year. As prices are trading close to February's low at 72.43, downside momentum could speed up should the share mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dark Cloud Cover" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Expeditors International. Out of 10 times, EXPD closed higher 70.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after nine trading days, showing a win rate of 50.00% with an average market move of 0.43%.