EXPD closes higher for the 4th day in a row
Expeditors International of Washington Inc. (EXPD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, EXPD finished Thursday at 65.20 edging higher $0.80 (1.24%) on low volume, significantly underperforming the S&P 500 (6.24%). Trading up to $2.15 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 Mar 26, 2020):
Thursday's trading range has been $3.42 (5.28%), that's slightly below the last trading month's daily average range of $3.94. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for EXPD.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
The market managed to close above the 20-day moving average at 65.16 for the first time since March 4th. When this moving average was crossed above the last time on March 4th, EXPD actually lost -1.44% on the following trading day. Prices are trading close to the key technical resistance level at 66.91 (R1).
Though the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 67.29 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Expeditors International. Out of 74 times, EXPD closed higher 58.11% 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 10 trading days, showing a win rate of 54.05% with an average market move of 0.57%.