Tale of two travel stocks: Expedia and TripAdvisor are seeing very different months

It's the tale of two travel stocks.

Shares of online booking companies TripAdvisor and Expedia have seen a massive divergence this month, and one technician says the charts are pointing to trouble ahead for one name in particular: TripAdvisor.

So far in February, TripAdvisor has been on a tear — surging 23 percent and is the second best-performing stock in the S&P 500. This as rival Expedia has fallen nearly 19 percent and is the second worst-performing stock in the S&P 500.

Ari Wald, head of technical analysis at Oppenheimer, explained that from a technical standpoint, there is reason to be skeptical of TripAdvisor's recent rally. "This stock is still making lower highs for the past few years, I am very skeptical of this move, and if it's truly marking a change in the long-term trend," Wald said Tuesday on CNBC's "Trading Nation."

While Wald doesn't believe either the TripAdvisor or Expedia charts show strong long-term trends, between the two, "TripAdvisor is overbought in a poor trend, so I think TripAdvisor is the tactical play here to sell. Forty-six dollars is the key resistance level."

Furthermore, Boris Schlossberg, managing director at BK Asset Management, said Tuesday on "Trading Nation" that while neither stock is a buy right now, "the bullish case for both is if you're truly a big believer in a massive bull move this year in the market, and that the tax cut is going to increase spending on travel."

TripAdvisor and Expedia shares were roughly unchanged midday Wednesday.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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