XING: Battle At Neckline Resistance

(Click On Chart To Enlarge)

"Buy support...Sell Resistance."

XING's "Gap To Crap" opening yesterday, to 12.29, was ten cents below neckline resistance basis the weekly chart, which comes in the week of October 19 at 12.396.

A "Gap To Crap" is when a stock opens at or near its high of the day, which seems bullish, but that higher opening is almost immediately met with selling, and the stock languishes and/or slides for the remainder of the session. When the "Gap To Crap" is at KEY RESISTANCE, as it was in XING yesterday at the neckline of the broken Head & Shoulders, it also invites the short sellers in.

"Sell and/or Sell Short at Resistance." They did. The 12.29 opening was the high on the day, and XING got sold and slid to a close of 11.86, near the low of the session.

XING not only opened right below resistance basis the weekly chart, and failed, it also closed back below the 11.95-11.94 Cup & Handle breakout basis the daily chart for the second day in a row, putting the validity of that breakout in serious doubt.

Technically, XING is vulnerable here and needs to close back above the 11.95-11.94 Cup & Handle breakout in the daily chart, and then scramble back above the 12.396 neckline in the weekly chart.

In the Hourly chart (posted at the end of last week), near-term support still is 11.51-11.53.