Sunday, November 18, 2007

XING: Responses To The Fundamentals




XING's recent negative RESPONSES to "Good News:"

1. October 26 earnings - Response: Gap To Crap Bull Trap at 10-month neckline resistance.
2. November 2 Big Buyer at 11.80 - Response: Failure just below 10.80 resistance
3. November 6 Dutton Report - Response: DOUBLE failure at 10.80 resistance
4. November 14 H1 Report - Response: Rally from 9.95, above 10.00 - 10.08 resistance, then a give back of almost all of that entire gain. Yesterday's close was 10.03, only eight cents higher than where XING stood prior to the release of H1.
5. November 16 QXM earnings: Response: Failure to complete the Right Shoulder of a "possible' Bullish Inverse H&S pattern, and a breakdown below the 10.08-10.00 bottom rung of resistance.


If XING can't regain that bottom rung of resistance, next support is the up trendline off the September 14 low, which comes in on November 19 at 8.994, then 8.82, which was the November 9 low. That's important support here because as long as XING trades below the 10.08-10.00 bottom rung of resistance, it's bearish and the following downside targets are IN PLAY:


1. 8.82-8.994 (near-term support...the latter rises 0.029 each day)

2. 7.65-7.78 - (August - September lows)

3. 6.67 - measured move off the November 8 breakdown below 10.08-10.00 trendline

4. 6.53 - measured move off the Halloween close below the October 5 trendline

5. 4.11 - July 17 Crash target


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