It’s the narrative of two travel stocks.
Shares of online booking companies TripAdvisor and Expedia bear seen a massive divergence this month, and one technician says the graphs are pointing to trouble ahead for one name in particular: TripAdvisor.
So far in February, TripAdvisor has been on a flit — surging 23 percent and is the second best-performing stock in the S&P 500. This as measure up to Expedia has fallen nearly 19 percent and is the second worst-performing routine in the S&P 500.
Ari Wald, head of technical analysis at Oppenheimer, explained that from a applied standpoint, there is reason to be skeptical of TripAdvisor’s recent rally. “This range is still making lower highs for the past few years, I am very skeptical of this budge, and if it’s truly marking a change in the long-term trend,” Wald said Tuesday on CNBC’s “Mty Nation.”
While Wald doesn’t believe either the TripAdvisor or Expedia tabulations show strong long-term trends, between the two, “TripAdvisor is overbought in a second-rate trend, so I think TripAdvisor is the tactical play here to sell. Forty-six dollars is the key partisans level.”
Furthermore, Boris Schlossberg, managing director at BK Asset Direction, said Tuesday on “Trading Nation” that while neither commonplace is a buy right now, “the bullish case for both is if you’re truly a big believer in a massive bull make off this year in the market, and that the tax cut is going to increase spending on rove.”
TripAdvisor and Expedia shares were roughly unchanged midday Wednesday.