XING - Ascending Triangle

(Click On Charts To Enlarge)

After the possible Bullish Inverse H&S and the Bullish Island Reversal both were negated on January 4, XING fell back to a low of 7.26 on an 8-day selloff. UGH. The stock was very much at risk of breaking the December earnings low of 7.15, but instead, XING hung on and now has formed a "possible" Bullish Ascending Triangle in the very short-term. The top of the pattern is perfectly flat at 7.94. XING closed a penny below the breakout, at 7.93. From here, XING even has got room to go back and tag the ascending line off the 7.26 low, then breakout, or it simply could go ahead and print 7.95, which would be a short-term technical breakout.

If XING does break out, a target of 8.62 would be IN PLAY, right where the declining 50 DMA currently is positioned, but that's coming down hard at about six or seven cents per day. Targets against the trend are less likely to get MADE and the trend is bearish, but 8.62 would be IN PLAY nonetheless, as long as XING trades above 7.94.

Math for the target:

7.94 Highs of the Ascending Triangle

7.26 Low

7.94 - 7.26 = 0.68 points added back to 7.94 = Target: 8.62 IN PLAY

The second chart is the daily MACD. Since the November low of 7.81, XING has had two lower closes, but the MACD has had two "higher highs." That's called a DOUBLE positive divergence which is showing a loss of momentum on the downside in the stock, but it's only bullish if PRICE moves higher. If XING can break out above 7.94 and if the target of 8.62 gets MADE, that's a step in the right direction for the stock.