XPO Inc

XPO remains medium-term bearish following a decisive Support Failure and sustained lower highs and lower lows. Price is deeply oversold and has initiated a bounce, making immediate shorting suboptimal. Deferred bearish execution into the declining 9- and 20-day EMA resistance zone near the broken support area is preferred. A sustained reclaim and acceptance above those EMAs into the former support zone would invalidate the bearish bias.

• ↑Q2 revenue was $2.4 B (+13% YoY) and adjusted EBITDA reached $434 M (+25%).
• ↑Adjusted operating ratio improved by 300 bps to 79.9%, reflecting efficiency gains.
• ↓Negative earnings yield and high leverage raise profitability concerns.