(Click On Chart To Enlarge)
In addition to the failed Inverse H&S pattern and the failure to hold above the Bullish Island Reversal in the daily chart, XING also failed to print the 7.95 breakout of the Ascending Triangle in the Hourly Chart posted several days ago. XING's 7.18 low this morning is a re-test of the 7.15 December earnings low, and it's a chance for the stock to put in a Double Bottom which would be very similar to the August-September, 2007 Double Bottom, if XING can hold here, and rally.
The Double Bottom, or "W" Bottom, last summer had an extreme left translation (see arrows on the chart). This one does, as well. The middle of the "W" in both patterns was put in almost immediately after the first low in the "W."
The MACD also is very bullish here, as it was when XING double bottomed last summer. Currently, there are THREE positive divergences in the MACD. Price has made "lower lows." The MACD has made "higher highs." As we discussed earlier this week, positive divergences in indicators are meaningless unless price moves higher. If XING fails to put in a Double Bottom here, it will be at new 18-month lows and the downside targets in the 6's (or lower) that have been IN PLAY since the end of October, 2007 likely will get MADE.
XING needs to look sharp and get moving to the upside here.
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