XES short term reversal bearish swing trade
After a few weeks running up from oversold, XES has run into its 20 WK MA (weekly chart); XES seems ready for a mean reversion play. I would consider a short trade if XES breaks below the trend-line and RSI(14) crosses below 70 (no longer overbought, but both must happen or it is a no go. The A/D oscillator shows a bearish divergence from the high on 2/9 and the high on 4/15. There have been 8 new highs since the run up began and prices tend to pull back or consolidate on or around the 7th or 8th new high or (low). Initial stop-loss is @ 29.98 and first unit take profit would be around 27, and the second at 85% of the Keltner channel reversion or 25.42. This gives us a respectable risk reward ratio of 2:1...of course you could buy an ATM put 28 expiring 5/15 for a .55 bid & .90 ask.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.