Hunting a Penny - XDL

XDL formed a bullish hammer with high volume after moving sideways for six sessions. D Line of MACD is moving higher and nearer to the zero level. The Histogram also printed its first green bar after seven red bars. %K Line (blue) in the Stochastic cuts %D after today’s trade. W%R, cut its average from underneath.

These entire scenarios warrant a possible break out tomorrow. However, price must break off from today’s closing, 0.405 to confirm its upswing. Stop loss should be applied if price fell below 0.395.

Immediate resistance  is around 0.42-0.43 and price should be stopped at 0.45, the 100-day MA.

Analyzed and Written by Smartbiz (Chart extracted from ChartNexus. Click to view)