GREY:XEBEQ - Post by User
Post by
tamaracktopon Aug 07, 2021 2:12pm
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Post# 33668548
Technicals are greatly improved
Technicals are greatly improvedWhen Xebec dropped from $8 to $4 in a matter of days in early March, all of its moving averages turned down for the first time in 5 years.
They had been flat or moving higher for the previous 5 years, and they turned lower.
When the stock first hit $4, the 21-day moving average was around $9.00, the $50-day was $7.80, and the 200-day was $6.10.
Technically, Xebec was a strong sell. It had broken its moving averages to the downside with a vengeance.
The effect of this sideways trading for 5 months has been to bring the moving averages lower and lower for over the last 5 months to a point where they are approaching today's stock price.
The 50-day moving average is now $3.86, the 100-day is $3.93. and the 200-day is $4.06.
The bar has been set very low going in to earnings.
The market will be looking closely at top-line growth, backlog, margins, and eps.. probably in that order of priority.
I expect it will surprise in at least 3 of those 4 categories.
It won't take much for the stock to break through those averages to the upside.
It won't take much for those moving averages to turn higher for the first time in five months.
Xebec will become a technical buy.
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