BEAR CASE
Expedia has failed to break the $150 resistance at 0.5 fib level in January, leading to controlled decline to its today price of $129.60 (EXPE 0.00%↑). The price is trading inside a triangle and on track to test the lower edge as the earnings day approaches.
The price has broken down from its parallel channels and on a continuation of the Elliot wave. The bear case for this bearish scenario is also depending whether the SPY 0.00%↑ incurs a significant correction in the coming days. We are likely to see a retest of the channel and a rejection downwards towards the gap and all of volume at $120, where if it fails we will see support at $114.
This also concurs with lowered estimates for Q1 2024, likely loss at upcoming earnings and inflationary pressure.
BULL CASE
EXPE 0.00%↑ appears to be trading inside a falling wedge, which in this case is a continuation pattern for the wider uptrend. The side of this breakout will be significant, if upwards we will see a second attempt at breaking the triangle, this would put us at -50% of the 2022 all-time-highs. A lot of room left to room for when FED approaches a soft landing.
Ideally for my current play, we would see lower lows before bouncing upwards on volume, as depicted below.
Happy trading and let me know your thoughts on where the price will go.