Expedia Stock Surges 8% to $195 as Golden Cross Signals Bullish Momentum

Candlestick Theory
Expedia's recent candlestick formation shows a robust bullish candle on August 8th, closing near its high at $195.26 after testing $213 intraday—a clear rejection of lower prices near $191.15. This pattern, combined with three consecutive higher closes, signals strong buying pressure. Key resistance now emerges at the psychological $200 level (tested repeatedly in May and July 2025), while support crystallizes around $180-$185, a consolidation zone from early August that recently catalyzed the rebound.
Moving Average Theory
The stock currently trades above all major moving averages: the 50-day ($182), 100-day ($173), and 200-day ($167), confirming a multi-timeframe uptrend. Significantly, the 50-day MA crossed above the 200-day MA in late July—a "Golden Cross"—reinforcing long-term bullish momentum. However, the sharp rally above the 50-day MA suggests potential short-term overextension, increasing vulnerability to pullbacks toward $185-$188 support if profit-taking accelerates.
MACD & KDJ Indicators
MACD (12,26,9) maintains a bullish crossover above the signal line, with the histogram expanding positively since early August—consistent with accelerating upside momentum. KDJ (14,3,3) resides in overbought territory (K: 87, D: 82, J: 97), warning of exhaustion risk near-term, though no bearish divergence is evident yet. The MACD-KDJ confluence suggests the uptrend remains intact but may consolidate to alleviate overbought conditions.
Bollinger Bands
Volatility expanded notably on August 8th, with price piercing the upper Bollinger Band (20-period, 2σ) at $208. Such breakouts often precede short-term consolidation but validate strong momentum. The prior contraction phase in late July indicated a volatility squeeze, resolved by the current breakout. Price remains firmly above the 20-period moving average ($185), signaling sustained bullish control. A retreat toward the midline ($185) would offer dynamic support.
Volume-Price Relationship
August 8th’s surge occurred on exceptionally high volume (6.96M shares, ~3x the 30-day average), confirming institutional participation. Volume has consistently increased during the three-day rally—a hallmark of sustainable upward pressure. The absence of climactic volume peaks suggests accumulation rather than exhaustion, though persistent high volume near $200 resistance could trigger profit-taking.
Relative Strength Index (RSI)
The 14-day RSI (68) approaches overbought territory but lacks bearish divergence. While exceeding 70 would signal overextension, RSI’s positioning aligns with strong trending markets where readings can remain elevated. Notably, RSI failed to enter overbought during June-July’s weaker rallies, making its current strength a marked improvement. However, a decisive break above 70 warrants caution for short-term pullbacks.
Fibonacci Retracement
Using the March 2025 peak ($208) and August 2024 trough ($125), critical Fibonacci levels emerge. Recent consolidation held the 61.8% retracement ($180) as support—now a key floor. The current rally faces resistance at the 78.6% level ($197), aligning with psychological resistance at $200. A successful breach targets the 100% extension at $208.
Confluence & Divergence Observations
A strong confluence of indicators supports bullish sentiment: moving averages stack bullishly, MACD/volume confirm strength, and $180 Fibonacci-support aligns with the 50-day MA. The KDJ overbought signal lacks corroboration from RSI or volume divergence, suggesting any pullback may be shallow. No critical bearish divergences exist. However, the proximity to $200 psychological resistance, elevated volume, and overbought KDJ increase near-term consolidation probability, with $185-$188 offering strategic entry support.