From May 27, on PCU:
"There are a number of things that I like about the chart of Southern Peru Copper, PCU:
1. The 34/55RSIs gave TWO "buy pivot" signals when Data Point #4 got put in.
2. The May 20 rally to the top of the Symmetrical Triangle failed by about four cents. That was a trendline validation, telling us, "Yep, that's resistance alright!" When validated trendlines get taken out, that tends to have some significance because Ms. Market then is telling us, "Nope, that isn't resistance any longer."
3. On the pullback from validated resistance, PCU put in lows of 19.04 and 19.01, right near the two "Buy Pivots" of 19.03 and 19.10, so that area is support, so far.
4. That support also is at the top of the Kumo (Cloud), represented by the vertical lines in this Ichimoku Kinko Hyo chart. We can "See At A Glance...The Table Of Balance" that the stock is bullishly positioned.
5. The pullback from validated resistance also gave the stock a chance for form a "nested" Bullish Falling Wedge (the pattern in blue), the top of which came in yesterday at 20.015. The close was 20.02, so that's a technical breakout of that pattern, by a ha' penny.
6. The MACD has come back toward its zero line, has put in a bullish divergence, and just missed making a Bullish Cross of its signal line yesterday, by a hair: 0.0065."
PCU had a "bumpy" breakout on May 27, which I find difficult to play. It broke out, then gave back ALL all of the day's gains and closed at the low of the session. Yeesh. The following session, it gapped up, but then gave back ALL of the morning's gains, AND went below the May 27 low. Yeesh.
At that May 28 low, however, it planted a foot at the top of the Kumo (Cloud), the vertical lines, and from there, the bullish factors enumerated above were expressed with a powerful move to the upside out of the "nested" patterns: The little Bullish Falling Wedge (in blue), "nested" within the larger Symmetrical Triangle (in purple). PCU is up 20% off the 19.49 low three sessions ago.
XING put in a nominal (in name only) new high in yesterday's session with a print of 2.23 vs. the May 20 high of 2.2299. The volume was a decent 492,000 shares for this rather thinly traded stock.
Since the May 20 high, XING has remained above The Channel (in blue), and has held at the Tenkan-sen and Kijun-sens (8 day and 21 day, represtnted by solid green and red lines, respectively).
"The bigger the base...the better the breakout." This base is of six months' duration, which is very decent. Everyone who got long the stock since mid-December, when this base began, is whole. There isn't any nearby overhang of sellers, so this is a chart that could rally on any excuse at all, on the technicals, e.g., an interest in "China plays."
Nice chart, as it stands. We'll see if XING can capitalize on it.
7 comments:
I've followed XING since you last wrote on it. Does the fact that it has failed twice at $2.23 level have much importance for your analysis?
Good Morning, Mark,
That's telling us that the 2009 highs between 2.12-2.23 IS resistance, and now, specifically, 2.23 IS resistance.
Yes, it has importance, which is why I said in the May 20 post that we'd like to see that get taken out to the upside. That "should" bring in some technical buying on a breakout of the six-month base if XING can start moving above the 2.12-2.23 highs.
If it can't, the "logical stops" are a print below one of the recent lows (horizontal red lines) in the chart, depending on the amount of risk that one would wish to take.
Those lows are 1.81 and 1.63.
Did you understand my responses to you yesterday? I misunderstood your question, so I posted a second response.
yes I did. Thanks so much for all the attention you pay to my inquiries. It has helped both my trading and my analysis.
Mark,
You're very welcome. I'm glad if any of it helps. Take a look at XING. It's moved through that 2.12- 2.23 resistance on nice volume.
Melf,
What's your take on todays action? I have been in XING for sometime and actually picked some more up this morning. What do you see happening tomorrow?
Good Morning, Tammi,
My take on yesterday's action is that it was the most bullish day that XING has had in a long time. I'll update it in this morning's post.
I don't make predictions because I have no idea what a stock will do today or any other day. I just try to follow the charts as best I can, and right now, the XING chart is showing a six-month bullish technical breakout.
Best of luck to you, Tammi!
Just wanted to thank you for your POT post. Based on it, I got out of my short with small profit, then reshorted at 120.72 (planned to get much more in mid 121, never got hit) for a wonderful profit when I closed yesterday at 110.60. Thank you, thank you.
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