Strike 2 - XEL Rises

Its been a merry two weeks for Xcite holders who have seen the share price shoot up from previous levels, smashing the 100p barrier today. The blog highlighted XEL just two weeks back at 76p noting that should 80p (the rising triangles top) be breached, a fast upward movement could entail, and its fair to say it did. Since then the share is up circa 45% at almost 110p (109.75p) - an excellent gain in two weeks.

Unfortunately, ADVFN (the charting service I use) has a problem with its XEL data where it cannot recall data past 6 months ago so I've had to construct a less adequate chart. Xcite is still stuck in a downtrend so there is room for movement either way in the medium term. However, Xcite is also prone to spike as have been seen on two occasions already as per the chart above - in July 2011 and more recently in February-March. The share price has met resistance at 110p which follows along to a closing price double bottom back in late 2011. The spike tops align towards the 130p zone. The MACD has room for movement, but the Relative strength index is very overbought - its standing at around the 85 mark which is quite a way over the 70 mark overbought signal. Volumes today were very high which may hint at potential news, but in the absence of this a pullback is likely. The stochastic is also fully overbought.

All signs are towards a retrace back down, but like I said, news would blow the charting away for the time being. If a spiked top is formed tomorrow/Friday and the downwards movement exceeds 3-4% perhaps think about top-slicing your investment to lock in some profit. A third or quarter top slice would be reasonable but this is entirely up to you. A core holding for long term developments is probably wise, but this could simply be a speculation driven spike up.

Nonetheless well done to all Xcite holders.

1 comment:

  1. Excellent call - good site, just signed up