Xcel Energy Inc. (XEL) – Double Top Short Setup📉 Description:
XEL has formed a double top pattern, a classic bearish reversal signal. Price rejected resistance around $71.22 and has started to decline, confirming the pattern with a break below the neckline. This setup suggests that sellers are in control, and further downside momentum could follow.
Volume has also shown a slight increase on the drop, adding confluence to the bearish case. If price stays below the confirmation level, we could see a continuation toward the target zone.
🔑 Key Levels:
Entry: Below confirmation level
🔴 Stop Loss: $71.22 (Above resistance)
🟢 Target: $52.46 (Measured move of the double top pattern)
📊 Analysis:
Risk/Reward: Favorable R:R ratio, aligning with technical expectations.
Bearish Confluence: Rejection at resistance, pattern confirmation, and volume support.
Trade Type: Swing short, targeting a deeper correction.
If momentum continues downward, a break of $56.74 (intermediate support) could accelerate the move toward the final target. Keeping an eye on overall market conditions for additional confirmation.
