Don't Chase This XL Move
Shares of global insurance and reinsurance provider XL Group (XL) are up more than 4.5% today after the company reported better-than-expected first-quarter earnings after the bell Tuesday.
In October of last year, the stock price moved above its 50-day moving average after trading below it for the previous six months. Since then, it has made a series of higher lows, but has not been able to sustain a move above resistance in the $22.00 to $22.50 area. In March, the 50-day moving average made a golden cross above the 200-day average and price entered a narrow channel consolidation. Today it is, once again, testing the upper end of the pattern. On the weekly timeframe, MacD continues to move higher, supporting the intermediate-term trend, but stochastics is in an overbought condition and is signaling the potential for a pullback....169 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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