Electric Vehicle Frenzy. Is XL the Next Breakout?!?
Updated
NYSE:XL is an EV play that I have been watching for the past couple of weeks. Recent news: 6 days ago they released news on a partnership to develop all-electric and plug-in hybrid refuse trucks with Curbtender. They also were initiated with Buy rating and $30 PT at Canaccord and BTIG. This news gave XL some momentum and we gapped up 8% and tried to break out of the Daily channel. XL sold off hard and gap filled but found a bottom at $20.12 area and has started to bounce. Today we retested the Daily trend line but failed to close above. EV stocks are hot right now (check out NIO and BLNK). XL looked to have the same momentum this morning but failed to hold the gains.
Volume: on the 4h chart we can see a stepwise increase in volume as we found support around $20 lvl. Today’s volume may have just been a sympathy play based on the overall EV market but keep an eye on how XL behaves the rest of this week. I am going to be watching to see if we can breakout of this Daily channel. This would set up a retest of $25. The main thing missing from XL is volume. Ideally we want to see >12M in volume.
SMA’s: We have the Daily 20 SMA serving as support at the $20.18 lvl and on the 4h chart we are sitting right above the 50 & 20 SMA’s which should help hold the $20 lvl.
Plan: I am currently swinging shares at $20.41 avg which I will hold with a stop loss under $18.30. If XL fails to gain momentum and breakout I will be looking for another leg down to the $18.70 area where we had the triple-bottom. If these lvls can hold I will add more shares.
If volume and momentum continue into tomorrow and we can break out of the wedge pattern then I will be adding 2/19 22.5 and 3/19 22.5 calls for swings.
**I will be keeping an eye on NIO
NIO/BLNK 
BLNKto monitor EV momentum. I am currently in NIO calls as of this morning with the massive breakout. Hopefully, this can continue into tomorrow for XL.
About XL: XL Fleet Corp., formerly Pivotal Investment Corporation II is a provider of vehicle electrification solutions for commercial and municipal fleets. The Company offers electric drive systems that enhances fuel economy up to 25-50% and reduce carbon dioxide emissions up to 20-33%, while enhancing fleet operations. The Company offers XLP plug-in hybrid electric and XLH hybrid electric upfit solutions. Its hybrid solutions can be installed onto many of the gasoline and diesel fleet vehicles, including pickup trucks, cargo and passenger vans, commercial vans and shuttles, box trucks and delivery vans. The Company offers its solutions for Ford, Chevrolet, GMC and Isuzu customers.
Volume: on the 4h chart we can see a stepwise increase in volume as we found support around $20 lvl. Today’s volume may have just been a sympathy play based on the overall EV market but keep an eye on how XL behaves the rest of this week. I am going to be watching to see if we can breakout of this Daily channel. This would set up a retest of $25. The main thing missing from XL is volume. Ideally we want to see >12M in volume.
SMA’s: We have the Daily 20 SMA serving as support at the $20.18 lvl and on the 4h chart we are sitting right above the 50 & 20 SMA’s which should help hold the $20 lvl.
Plan: I am currently swinging shares at $20.41 avg which I will hold with a stop loss under $18.30. If XL fails to gain momentum and breakout I will be looking for another leg down to the $18.70 area where we had the triple-bottom. If these lvls can hold I will add more shares.
If volume and momentum continue into tomorrow and we can break out of the wedge pattern then I will be adding 2/19 22.5 and 3/19 22.5 calls for swings.
**I will be keeping an eye on NIO
NIO/BLNK BLNKto monitor EV momentum. I am currently in NIO calls as of this morning with the massive breakout. Hopefully, this can continue into tomorrow for XL.About XL: XL Fleet Corp., formerly Pivotal Investment Corporation II is a provider of vehicle electrification solutions for commercial and municipal fleets. The Company offers electric drive systems that enhances fuel economy up to 25-50% and reduce carbon dioxide emissions up to 20-33%, while enhancing fleet operations. The Company offers XLP plug-in hybrid electric and XLH hybrid electric upfit solutions. Its hybrid solutions can be installed onto many of the gasoline and diesel fleet vehicles, including pickup trucks, cargo and passenger vans, commercial vans and shuttles, box trucks and delivery vans. The Company offers its solutions for Ford, Chevrolet, GMC and Isuzu customers.
Note
Tried to breakout this morning but again just sold off. This channel is very tough resistance. Be ready when it does eventually breakout. If XL can't reclaim the $20 and bounce we may retest $18-$19 range. I laid out my plan above I will add shares at those lvls if we are holding. This is a longer swing for shares, calls I will buy on breakout and volume. GL!Note
notice this support area where XL is currently holding. If the market can turn around it may be a good dip buy.
NIO strong after that sell off but BLNK still selling off rn.
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XL holding right under $20, it looks like it wants to head to 518 area. $ rotated out of EV's yesterday after the open so lets see what happens the rest of this week.Note
I'm just watching XL until we some volume comes into the ticker. has some strong support below it so if we get back to the double bounce/edge of value area I may add some shares. The longer the consolidation the bigger the move.Note
50 SMA acted as support and is now pinching price action up to the top of the channel. Still holding shares, tough one to time if your not in front of your computer all day. If it doesn't break out of the channel this week I'd expect a move down to next support.
Note
XL yet again tested the channel trendline and failed to hold above. This is the 4th false breakout of the channel in the past 12 days. We are still hugging the same bottom trendline as support.
Note
XL looks to be heading back to $18.30-$18.60 lvls, looking weak.Note
XL following a lot of the EV plays with sell-offs 📉. XL warrants expire on March 1st so lets see if there is any effect on XL then. XL needs to hold over $18. Still holding my shares but will cut if $18 looks like it will just sell-off. $14.30 lvl is a possibility if $18 fails.Note
let's see if xL bounces back to $20Trade closed: stop reached
XL just no momentum or bounce. I cut my shares today for a 9% loss. I will revisit this trade if XL can get some news/momentum. Will look to play breakout of its channel. Until then I'll allocate those funds elsewhere.
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