XPO Logistics is an American transportation and logistics company. It is a top-ten global logistics provider of cutting-edge supply chain solutions and does business in 30 countries. It has 50,000 customers, including 69 of the Fortune 100 companies. E-commerce and global economic growth are both demand drivers for logistics and the runway for the company is quite long.
The rise in the logistics sector over the past decade manifests itself quite clearly in the long-term uptrend that XPO has been in for the majority of past decade. The stock has generally respected the long-term trend line, shown in yellow. In February and March of 2020, the stock fell 46% from a high of almost 90.
In April, the stock bounced up from an important area consisting of the bottom of the long-term trend as well as a historic support-resistance level at around 49 denoted with blue line. Since then, the stock has moved up almost 40%. The next likely target is the most recent resistance level at 99 and then the top of the long-term trend at 129. Stop loss can be placed below the 49-support level.
Positions taken at $68.40 with stop loss 36% below at $43.52. Short term traders could take profit at $110 giving a profit of 61%