XEL SUB 60P

Like to hear you guys thoughts on current SP of XEL, went sub 60p today, so bought a few at 59.3p. Closed just above at 60.25p. Seems cheap as chips to me at this price. Hoping for a bounce soon as drop seems overdone

, maybe a correction back to around 74/5p in short term.

Hi Count, good to see you over here

I'm not sure that "cheap as chips" qualifies as a sound technical support level on which to buy a plummeting share but there is some support at 50.9p from a gap and double top:



dl.dropboxusercontent.com/u/20815047/FTS...XELdaily31_03_14.png

If that level fails (as the 61.6p gap clearly did) then next support is 35p. As ever, it's best to wait until a key support level or confirmation that a bottom has formed before buying as it could just keep on dropping.

Isn't it interesting how the AIM (and ex-AIM) darlings are the ones getting slammed? Easy pickings for the City...

PS Note that previous uptrend support got backtested perfectly at 106p - great place to short it if your broker allowed (sadly, mine didn't).

Thanks for your dose of reality Steve ')
I agree with your sensible advice that it is not clear it has bottomed yet.
Still a lot to learn.

Steve would 53.6p be considered a significant support level (from 26/06/12)?

Hi Steve
As ignorance only gains by asking questions can I just ask if the RSI dropping through the lower channel line doesnt indicate it being oversold? Also is the support not just above 60 on your chart? Which looks like it might hold?