Very goodFrom Thursday evening:
"While I remain extremely bullish on Xebec,technically, today was ugly. While it wasn't a pronounced violation of the descending wedge, and while it happened on a fourth consecutive day of decreased volume, it looks likely that Xebec will fill Monday's gap last Friday's at $4.87. That would be glaringly obvious to any true technician. I hope it does. It would be a logical starting point for a sustainable rally after the slow fade we've seen this week.
A trade down to $4.87 followed by a rally back above $5 would be an optimal scenario. Much like the trade down to $3.76 and the afternnon rally to $4.29 on March 17th set us up for the rally to $5.49 on April 5th."
While Xebec didn't rally back above $5 today, it did fill the gap at $4.87 perfectly, and never traded a penny below it. The gap is gone, and Xebec didn't fare any worse than the other big names.
Notice how the stock was down .96% in the US today? It last traded slightly above $4.90 CDN, 3 cents above the day's low. That last trade came late in the day. Selling today was hardly pronounced.
While others might think it was a bad day, I'm thrilled that the gap is filled. Technically, it was destiny, sooner or later.
Now the stock has the all clear to rock and roll.
Last Friday the stock closed at $4.87, having come from a low of $3.76 ten days earlier. On Monday it created the gap I've been talking about, opening up 33 cents at $5.20, and reaching a high that day of $5.49. it was a bit stretched. Any stock would deserve a rest after rallying 46% in 11 days.
It's recent performance is far more impressive than it appears on the surface.After consolidating all week on lower and lower volumes, Xebec closed today up exactly 20% off its closing low on March 16th. By comparison, from its March 16th close Ballard ended today down 9.65%, Plug is down 24.3%. and FuelCell is down 19.2%.
If you don't believe me, check for yourself.
When Xebec gapped open last Monday, it had already come a long way. When it opens next week, having closed a penny higher than it did a week ago today, it will do so after a week of rest, and after a very orderly week of digesting a very quick 46% gain.
I can't wait till next week. I'm excited for all of you.