Taking A Trip Soon? These 2 Stocks Look Ready To Take Off


As the gobal vaccination effort ramps up, more people around the world will be looking to reunite with loved ones or take a vacation.

With domestic travel becoming more and more possible, and international travel starting to open back up, Expedia Group EXPE and TripAdvisor TRIP could benefit from pent-up demand.

See Also: How to Buy TripAdvisor Stock

The Expedia Chart: Expedia’s stock has been trading sideways, in consolidation, after making a new all-time high of $187.93 on March 18. On Friday Expedia printed a bullish green engulfing candlestick with a small upper wick. The upper wick demonstrates there were some sellers at the $178 level.

Expedia is trading above both the eight-day and 21-day exponential moving averages (EMAs), and last week the eight-day EMA crossed above the 21-day EMA, all of which are bullish indicators. Expedia is also trading above the 200-day simple moving average (SMA) which indicates overall sentiment in the stock is bullish.

Expedia closed the day overtop of a resistance level at $170.41, which has now become support, and the stock spent the remainder of the week trading between that level and another resistance level at $179.58.

Bulls want to see continued momentum push Expedia’s stock up over resistance near the $180 level. If it can regain that level as support, it has no further resistance until reaching its all-time high. If the stock could pop up and make a new all-time high, with continuation, Expedia could make a run into blue-skies.

Bears want to see Expedia drop back down toward the $170 level which could push it down under the eight-day and 21-day EMAs. If the EMAs acted as resistance Expedia could fall down toward the $162 level.

The TripAdvisor Chart: On Thursday TripAdvisor broke up above a descending trendline that had been holding the stock down since the stock made a 30-month high of $64.95 on March 15. On Friday TripAdvisor’s stock printed a bullish hammer candlestick on the daily chart and closed just above the 21-day EMA.

Although TripAdvisor is trading above both the eight-day and 21-day EMAs, the eight-day EMA is trending below the 21-day EMA. Bulls will want to see continued upward price movement for the eight-day EMA to cross back above the 21-day EMA. This would give bulls more confidence a larger move was in the cards.

Like Expedia, TripAdvisor is trading above its 200-day SMA indicating overall sentiment for the stock is also bullish.

Bulls want to see large bullish volume enter TripAdvisor’s stock and for it to continue its trek north toward its next resistance level at $46.67. If the stock was able to regain that level as support it has room to move up toward the $51.72 mark.

Bears want to see TripAdvisor fall back below the descending trendline and break support at $39.88. If that were to happen TripAdvisor’s stock could fall toward $36.98 before potentially bouncing.

EXPE and TRIP Price Action: Expedia closed Monday at $177.31. Shares of TripAdvisor closed at $43.34.

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