XING: 2.74 Target MADE

(Click On Chart To Enlarge)

From December 7 post:

"Just for fun, if I could design a game plan for XING, it would be the following:

1. On Monday, sell off to 2.26, the top of the Bullish Falling Wedge and validate it as support.

2. Rally to/near 2.74, which is the first target and also the top of the Kumo/Cloud.)"

On Monday, XING sold off to 2.25. "Former resistance 'should be' support on any retest." It was. XING planted a foot right on the top of the wedge and rallied. The 2.74 target got MADE yesterday. The high was 2.84.

"Take at least 'some' profits when targets get MADE."

Yesterday ended up being a "Dark Cloud" reversal on volume that was three times heavier than the prior session, and the low of the day was another retest of the top of the wedge. Although XING remains above the breakout, that looks pretty weak. By taking profits on half the position in a trade like this when a target gets MADE, it ensures a winner or a break even if XING should go back below the break out, and take out the 1.97 stop (the December 5 low).