Some companies spend their time in the spotlight. Maybe they sell popular goods or offer “can’t-live-without” services.
Often, these are corporations that are consumer-facing.
So, the media naturally covers these companies with a little more gusto than others. After all, we’re buying their stuff.
Why wouldn’t we want to know more about them?
It also helps that some of them, like Amazon and Apple, are among the most valuable corporations in the world.
But there’s other companies out there that focus on doing business with other businesses, also known as B2B (business 2 business).
Even though they work in the “background”, they’re still very important. Consumer-obsessed mega-corps simply can’t function these days without other companies supporting them.
And sadly, many of those “sidekick” firms don’t necessarily get that much attention.
But sometimes, they really should. And as of today, one company in particular stands head-and-shoulders above the rest.
In the weekly candlestick chart above, you can see that XPO Logistics Inc (NYSE: XPO), a supply chain and logistics provider, is setting up for an uptrend continuation.
Stochastics sit just shy of 40 and share prices are farther away from the lower Bollinger Band (BB) than we’d like, but the presence of two higher lows along a strong trendline is enough to dismiss concerns about those two indicators.
Add to that the fact that the most recent weekly candlestick closed above the last five candle bodies, and you’ve got the makings of a solid long setup.
Should XOP shares trade 0.50% above the 5-bar high to $59.20, I would have no issue entering a position.
But if we do go long on XOP next week, I would caution you to be wary of resistance at approximately $69.00. A higher high was set at around that level in early May, and unless XOP really makes a run for it, we may want to target an exit point slightly north of that price.
XOP also has less room to move upwards than I’d like, but share prices appear “locked in” to an uptrend, making this a very attractive opportunity.
That doesn’t mean we shouldn’t still be careful, though.
The market will likely open in confusion on Monday, after Trump and Xi’s lackluster G-20 meeting left investors disappointed.
For that reason, we use trade triggers – arguably a trader’s most important tool. Getting complacent can be extremely dangerous, especially after all the winners we’ve logged over the last few weeks.
So, moving forward, keep an eye on XOP. It might not be a “sexy” company by any means, but if its stock can rake in some easy gains for you, who cares?
