Will XPO INC breakout?

A possible breakout setup was detected on XPO INC (NYSE:XPO) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:XPO.

Zooming in on the technicals.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, XPO scores 8 out of 10 in our technical rating. Although XPO is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• XPO is part of the Ground Transportation industry. There are 45 other stocks in this industry. XPO outperforms 82% of them.
• XPO is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• When comparing the yearly performance of all stocks, we notice that XPO is one of the better performing stocks in the market, outperforming 90% of all stocks. However, this relatively good performance is mostly due to a recent big move.
• XPO is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so XPO is lagging the market slightly.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:XPO this score is currently 8:

XPO has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 48.09. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 47.93, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for XPO in the last couple of days, which is a good sign.

Trading setups like NYSE:XPO

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout analyzer.