Monday, April 23, 2007

XING- A Chart Offering Good Support / Stop Levels

I like this chart of XING. I see double support on this chart: The horizontal line at ~17 shows long term resistance being broken, with the recent dojis staying above the old resistance line. Also, the long term trendline rising from the Dec. 2006 lows will shortly be meeting the $17.00 level. I see the convergence of a rising trend line and a horizontal support line as "double" support.

I like this type of setup as it offers several areas to place stops, depending on the level of risk one wants to trade. Traders wanting to limit risk might have a chance to pick up shares just above 17.00 and set their stop just below it, while traders willing to start with a small position and take on more risk might consider a stop just below the area of $16.50


Anonymous said...

I may have to start putting more effort into my charts at my blog. You're making me look bad.

Woodshedder said...

Nah, I think you should just let it keep suckin'. The blog, that is.

Let us married folks with nothing better to do post the pretty charts. You single types with a life must surely have better things to do.