XING: Weekend Thoughts

(Click On Charts To Enlarge)

From April 6 comments:

"In fact, it stampeded on Friday to the "bottom rung" of first Major Resistance, beginning at 7.15. That's the solid black horizontal line, where XING failed to put in a Bullish Inverse H&S bottom, as well as failed to put in a "Double Bottom" with the Autumn, 2007 lows of 7.65-7.87."

Chart #1 Daily: XING had a good week, closing up $0.18 in a down market, but we can see the challenge that the Bottom Rung of Major Ressistance presented (horizontal solid black line). Attempts to get above 7.15 were met with selling.

Chart #2 Hourly: XING spent the week trading either side of 7.15, initially forming a Symmetrical Triangle posted last week, which now looks to have morphed into a possible Bull Flag. It's only bullish if XING can take out the 7.24-7.20 highs. This chart looks VERY BULLISH. But, it must be viewed in the context of the daily chart. If XING can break out of the flag to the upside, it will be rallying into solid resistance, beginning at 7.15 on up.

Chart #3 Daily: If XING sells off this week into QXM's earnings, that might not be so bad. The stock is ahead of itself basis the moving averages. The 50 DMA is at 6.47. The 20 DMA is way-y down there, at 5.92, but accelerating higher. A selloff this week would give those moving averages a chance to make a Bullish Cross, similar to what we got last autumn, when XING broke out of a Double Bottom, crossing 9.98. Back then, XING rallied to 11.94 off the breakout, then went into a Bullish Falling Wedge continuation pattern (purple). Notice that right at the bottom of the wedge, the 20DMA made a Bullish Cross of the 50 DMA, after which XING exploded from 10.08 to 13.38 in only 4 days.