EXPE (Long)...

EXPE reported earnings last week and left behind a good multi-month base. This looks like a continuation gap. You can see that back in late April it had a massive gap-up above the 200-day EMA (this one looks like a breakaway gap) and a successful retest of the 200-day EMA back in July. The gap left last week feels more like a continuation gap than an exhaustion gap, but only time will tell. I'm liking what I see here. There are multiple ways to play this one. If Thursday's lows fail to hold, that gap is probably going to get filled and EXPE would probably return to $18. If it goes lower than that, it's going to fall back into the base, and I would then look for a pullback towards the 200-day EMA to act as support. However, I think the stock will hold and after a little consolidation, I believe it will power higher. I'm looking to use weakness towards Thursday's low as a chance to start buying.



Position: none