XPO Logistics, Inc. (NYSE: XPO)

XPO Logistics, Inc. provides transportation and logistics services in the United States, North America, France, the United Kingdom, Spain, Europe, Asia, and internationally.

Take a look at the 1-year chart of XPO (NYSE: XPO) below with added notations:

XPO has stalled at the same $115 resistance area (red) several times over the past few months. The stock has recently turned lower, but it is still sitting just a few percentage points below that $15 level. A solid close above the resistance should lead to another leg higher for XPO.

The Tale of the Tape: XPO has a 52-week resistance at $115. The possible long position on the stock would be on a breakout above that level with a stop placed under it. 

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!

Christian Tharp, CMT