XING: Ahead of QXM's Earnings

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 - DOUBLE failure at 10.80 resistance

4. November 14 H1 Report - 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.

Included in the RESPONSE to XING's release of H1, however, was the 10.03 close, which was a close above the 10.08 - 10.00 neckline of the 7-week Head & Shoulders Top (blue circles), so if XING can hold here and rally, the stage is set to turn this around to the upside by completing the Right Shoulder of a Bullish Inverse H&S pattern (green circles), and by taking out the 10.80-10.69 neckline to the upside.

That would spring the BEAR TRAP that has been set. Those who sold and/or shorted the November 8 breakdown, and especially those who sold and/or shorted the two little Bullish Hammers on November 9 and 12 (the Head of the pattern) would be "trapped" if XING can successfully break out to the upside.

The breakout doesn't need to occur today, on QXM's earnings. Realistically, everyone who bought XING recently, prior to the November 8 breakdown, is a trapped Bull. All of them paid a higher price than the current 10.03, so many of them will be sellers on any rally. But, if XING can hold this neckline, complete the Right Shoulder and break out above 10.80 - 10.69 in the coming days, that overhead supply of sellers can be worked through.

Otherwise, XING likely is headed for at least a retest of the recent 8.82 low.