XING: Constructively Bullish

Apologies that this chart looks like I threw a pizza pie at it. LOL. Just wanted to show the big picture of XING, an old favorite of mine. It had a very nice run in 2006-2007, then crashed below a H&S Top (red line), then broke below its long-term up trendline (blue line).

From its high of 19.94 in early 2007 to its low of 0.90 in March of this year, XING lost 95% of its value.

On its way down, XING attempted to put in TWO Bullish Inverse H&S bottoms. The first one was in late 2007 - early 2008, just after it broke below the long-term up trendline. That pattern was rather skimpy in terms of width, and it failed.

The second attempt at a Bullish Inverse H&S pattern, in 2008, looked a little better in terms of width, but it also failed. XING then formed a Symmetrical Triangle (pattern in black), which resolved to the downside as well.

Since November of last year, XING has been trading in a Falling Channel. As we've been seeing so often recently, these Falling Channels and Falling Wedges are morphing, or attempting to morph, into Bullish Inverse H&S patterns, Bullish Ascending Triangles, and Bullish Cup & Handle patterns.

The current morph attempt (pattern in purple) looks like a Bullish Inverse H&S, or arguably, a Cup & Handle pattern.

In the daily chart, we can see that XING broke out above the Falling Channel, closed back below it, and now is sitting right on top of the channel. As we just saw from the TWO failed attempts at a Bullish Inverse H&S bottom in 2008, this stock knows how to disappoint.

However, this is a better base in terms of width. Roughly six months. And, it has at least broken out of the Falling Channel. It now looks to be "champing at the bit" for a breakout. XING needs to knock out the triple highs of 2.19, 2.12 and 2.14. If it can, first resistance would be 2.70 - 2.84, the bottom of the Kumo (Cloud) in the weekly chart, and the December, 2008 high of the Falling Channel, respectively.

A takeout of the April 28 low of 1.63 would look like a failure, and would mean "back to the drawing board."