Expeditors International of Washington (EXPD), a logistics services provider, is part of the Dow Transports and the Industrials SPDR. The stock caught my eye because it is in a long-term uptrend and recently pulled back to a potential reversal zone. First, the long-term trend is clearly up because the stock hit a 52-week high in early December. Also notice that the 50-day EMA is above the 200-day EMA and the stock is above its rising 200-day EMA.
The stock pulled back from early December to early February, and this pullback is viewed as a correction within the bigger uptrend. The pullback reached a potential reversal zone around 51-52 and turned up the last few days. I think this is a good spot for a reversal because broken resistance turns into support and the stock retraced 50-61.8% of the prior advance. Also notice that a falling wedge formed. The retracement amount and the falling wedge are typical for corrections within a bigger uptrend. Signs of a reversal are already appearing as the stock surged above 53 last week and MACD moved above its signal line.
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