Descending wedgeIn Technical analysis, on an ultra-short-term basis, Xebec is forming a descending wedge. This can be either bullish, or bearish, depending on which way it breaks.
The wedge is readilly apparent if we look at the highs and lows over the last 3 sessions, and also consider the volumes.
On Monday, the high was $5.49, the low was $5.02, and the volume was 1.99 million shares. On Tuesday, the high was $5.35, the low was $4.99, and the volume was 924 thousand. Today, the high was $5.28, the low was $5.02, and the volume was 686 thousand.
This is going to move one way or another, which is obvious, and when it does, it will be a decent move.
Personally, I think the odds are extremely favourable for a breakout to the upside. The stock has made a convincing long-term low that showed all the hallmarks of capitulation, hitting its low on March 17 at $3.76 after 3 consecutive down days on 23 million shares total volume over the course of those 3 days, only to close higher the very same day it hit that low, closing at $4.29, on 5.4 million shares. That's a 14% intraday reversal to the upside on 5+ million shares. How convincing is that?
Yesterday I thought it was noteworthy that the few trades that did go through below $5 (all at $4.99) didn't precipitate any semblance whatsoever of motivated selling.
Something is going to give very soon.