QXM And XING

(Click On Charts To Enlarge)

Chart #1 is QXM, back when we discussed last October how it was a "Perfect 10." Patterns within patterns can be very explosive when they breakout. We can see that when the Right Shoulder completed on the successful re-test of the top of the Ascending Triangle near $9.00 on October 4, QXM rocketed to the pattern target of 14.59, and beyond, in only a few days.

Chart #2 is QXM in the current time-frame, and we can see again the "patterns within patterns. " It's a nice 3 1/2 month base. The top of the dominant wedge pattern (in purple) was validated on February 4 (at purple #5), within a penny, so a break above that trendline "should be" significant, if QXM can rally. In the current selloff, we would like to have seen the bottom rail of the wedge pattern hold and get validated as support on any re-test. Yesterday, QXM closed 3 1/2 cents below it, but it closed above the down-sloping channel in green. That close below the wedge "could be" a downside fakeout, but I don't like to guess, and I don't like to be long a trendline break like that, so I'll continue to watch QXM and see what develops.

Chart #3 is XING. After the failed Double Bottom and the failed Bullish Inverse H&S possibilities in the $7's, XING sank to $5.50. Bear market rallies are notoriously sharp and can have very nice gains. XING had a quick 40% Bearish Rising Wedge rally (the pattern in red) that ended at 7.79, at the declining 50DMA and right at the failed Double Bottom zone: the 7.65 September low, and the 7.81 November low. "Former support 'should be' resistance on any rally." It was.

Since that February 5 failure at 7.65-7.81 failed Double Bottom resistance, XING has been ratcheting its way lower. "Lower highs....lower lows."