EXPE closes above its opening price after recovering from early selling pressure
Expedia Group Inc. (EXPE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EXPE ended the month -1.45% lower at 81.01 after tanking $3.92 (-4.62%) today on high volume, significantly underperforming the Nasdaq 100 (1.78%) following Thursday's earnings report. This is the biggest single-day loss in over a month. Today's close at 81.01 marks the lowest recorded closing price since June 26th. Trading up to $4.08 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (EXPE as at Jul 31, 2020):
EXPE reported earnings of $-4.09 per share after Thursday's market close. With analysts having expected an EPS of $-3.38, Expedia Group Inc. failed market expectations by -21.0%. The company's last earnings report was released on May 20, 2020, when Expedia Group Inc. reported earnings of $-1.83 per share missing market expectations by -46.4%.
Friday's trading range has been $4.57 (5.65%), that's above the last trading month's daily average range of $3.38. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EXPE.
Three candlestick patterns are matching today's price action, the Dragonfly Doji and the Southern Doji which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Southern Doji showed up on June 12th, EXPE gained 2.12% on the following trading day.
The share closed back below the 50-day moving average at 84.26.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling could move prices lower should the market test June's nearby low at 75.75.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. Its common bullish interpretation has been confirmed for Expedia Group. Out of 7 times, EXPE closed higher 71.43% 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 71.43% with an average market move of 3.16%.