Also on my morning Spike scanner came up NYSE:XYL (see below for the spike on the 30m timeframe).
I especially like this Support level as it has many matching components:
50% Retracement Level. My bread and butter. The most important Retracement Level.
Volume Profile node. Not the POC but a key level of price and volume here.
Ichimoku Cloud. A long...
XYL has produced a similar double bottom which will lead to bull continuation, as was seen in the first double bottom
Very nice comparable chart patters
0.618 can act as a great support for price as it moves slightly down along the up trend line in green
A few channels earlier in prices evolution can be identified also
This is the Weekly chart for XYL
XYL seems breaking down underneath Resistance, and seems forming a flag formation. Downward volume is increasing & moneyflow is going down as well. We think if it can break below $46.63 it can go all the way down to $40 area.
* Trade Criteria *
Date first found-February 9, 2017
Pattern/Why- Resistance breakdown, Inverted flag formation
Entry Target...
XYL looks very suitable short opportunity as it has lots of weakness. It has moneyflow divergence & insider selling.
It also breaking down from a long upward channel.
We think it will decline to 46 & lower, and we are considering $50 January puts, last traded for $2.55
You can check our detailed analysis on XYL in the trading room/ Executive summary link...
In a strong up trend however it's forming a bullish momentum divergence in the daily chart which suggests momentum is slowing. Buy on a pullback to demand zone. The demand zone highlighted here in yellow also coincides with former resistance on the weekly chart.
Entry: $39.47
Stop Loss: $38.93
Target 1: $43
