QXM - A Perfect "10"

(Click On Chart To Enlarge)

"THANK YOU MELF!

Excellent analysis! I would like to see YOUR ANALYSIS of QXM chart as well. QXM will be the DRIVER to XING valuation for a while until their COSUN busines proves growth.

XING owns 1.08 shares of QXM so just based on their OWNERSHIP XING should trade at $12.65 based upon QXM CLOSE. The QXM chart is quite BULLISH after this week's action and there is no RESISTANCE above $12. It broke WAY ABOVE trading band on over 5X AVERAGE volume."

Shining,

Thanks, and and also thank your for the information on QXM.

Due to my own workload, I normally have to decline requests for analysis, but I'm making an exception in this case because I bought XING yesterday, so it's in my own best interest to take a look at QXM since they're related ;)

My first comment is: I wish that I had looked at QXM before the breakout yesterday morning. "So many stocks...so little time." LOL.

My second comment is that QXM is a technician's dream.

Scores for Technical Merit:

10...10...10...10...10...10....

Here's why:

Pattern #1 Symmetrical Triangle (in red)
That pattern broke down on July 17, crossing 9.06, putting 6.80 IN PLAY.

Math for the target:

10.79 - High
8.53 - Low

10.79 - 8.53 low = 2.26 Points subracted from the breakdown at 9.06 - 2.26 = 6.80.

Targets are just "what we're aim for." QXM made a low at 6.92, shy of the 6.80 target, but "it ain't rocket science." I think we'd all agree that this pattern measurement did a darned good job of "ballparking" the target IN PLAY.

NOTE: This Symmetrical Triangle pattern (in red) later becomes recognizable as the Left Shoulder of the Bullish Inverse H&S pattern.

Pattern #2: Another Symmetrical Triangle (in blue)

Interestingly, this pattern broke out to the UPSIDE at the exact same number that the first Symmetrical Triangle broke to the downside: 9.06, putting an upside target of 11.26 IN PLAY.

Math for the target:

9.12 - High
6.92 - Low

9.12 - 6.92 = 2.10 Points + Breakout above 9.06 = 11.26 IN PLAY

After the breakout was when QXM starting racking up points for the "Perfect 10" score.

1. It rallied to 10.75, establishing the second data point on the neckline for a "possible" Bullish Inverse H&S pattern.

2. From there, it did an "a-b-c-" back flip to re-test the Symmetrical Triangle breakout AND to put in a Right Shoulder for the "possible" Inverse H&S pattern.

XNG nailed re-tested of the top of the Symmetrical Triangle within a penny, nailing that landing, and successfully re-testing that pattern breakout.

"Former resistance 'should be' support. It was.

NOTE: The Symmetrical Trianlge becomes the HEAD of the "possible" Bullish Inverse H&S pattern.

3. Bullish Inverse H&S Pattern (green circles)

Off the success re-test of the Symmetrical Triangle, and having established a low for the Right Shoulder, powered higher to neckline for the breakout, and was poised right below it at the October 8 close, beautifully positioned for the breakout with the "nested" Symmetrical Triangles in place, and after putting in a stunning technical performance.

At the open yesterday, October 9: KABOOM!!!!!!

1. Breakaway Gap opening at 10.70, just a hair below the neckline

2. Broke out above the neckline on BIG volume for this stock (1.7 million shares), indicating that players recognized the BIG pattern breakout.

3. The 11.26 target got MADE.

4. 14.92 is IN PLAY

Beautiful, Beautiful chart!

Shining, apologies that this was so long. Way-y more information than you wanted, I would suspect, but understanding these patterns and the techncials can be a very helpful adjunct to the fundamentals, if we're willing to take a look at them.

Good luck to you and to everyone playing XING and QXM. Of the two, QXM was vastly superior before the open yesterday, technically, and I would have played it instead of XING had I looked at the chart before this morning. Thanks for bringing it to my attention.

NOTE: Market opens in 40 minutes, so I don't have time to proof-read this. Apologies for any mistakes. I'll try to correct any later.