Are you watching what’s happening with Expedia (EXPE)? (June 19, 2014)
I just wanted to mention this on Expedia ( NASDAQ:EXPE ): this stock has been trading really well, it was the anti-Priceline ( NASDAQ:PCLN ) trade, when Priceline ( NASDAQ:PCLN ) was going down Expedia ( NASDAQ:EXPE ) was going up. It’s time to take some profits on this, particularly if you have options.
Here’s the thing, this last high was on Monday, February 24th, you can see the kind of cup this has been forming, a bowl really, but this today, was not quite a bearish engulfing pattern, but definitely a bearish development. The stock opened near yesterday’s close and it closed near yesterday’s open. You could say it was almost an inside day, very close, which reflects indecision, that type thing.
But I look at this, because of the volume, as really more of a reversal, short-term. I think long-term you’ve got to respect the weekly chart and see that this is a stock that’s been in consolidation, it’s probably going higher, but just look at it in this timeframe. Nothing is really obvious in the market, but to me it’s pretty obvious that the stock is up against this resistance level, and where you like to buy these stocks and these patterns is down at the lower end of the range.
So what I would suggest doing is go ahead and take some profits on Expedia ( NASDAQ:EXPE ) if you’ve got them and wait for the stock fall back more towards $70.00 and then buy it again; now you’re trading. So you take your profits now, right up here, I’d say 72.00, $73.00 is a better buy-point for this.
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