Don't Ignore This Chart!

Expeditors Hits Reversal Zone and Turns


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. 

Thanks for tuning in and have a great day!
--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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