Is it just me or do the charts suggest XRO is very oversold at the moment?
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Is it just me or do the charts suggest XRO is very oversold at the moment?
Which is indeed interesting, in my view, as it is the one NZ tech stock that's actually selling a tangible service to real customers, growing at 80%+, and by all indications executing to plan. I'm not saying that WYN, PEB, DIL and SLI aren't delivering results, but you have to say that XRO is the most established and promising of them at this stage. I suppose its valuation ran too far ahead of itself in the past few months. But I reckon whoever gets in now will do well in the medium/long term (Disc.- I topped up again).
It's a "put your money where your mouth is" moment, I reckon. Unfortunately my money isn't as big as my mouth...
What are you fellows even talking about?
oh right?.. weird.
So anyway.. XRO.. it's not rallying like it ought to..
Volume is down and price doesn't seem to be moving.
I think there are buyers out there, but I imagine they're all waiting to see if it will drop further before stepping in. If NASDAQ and Xero's contemporaries further gains overnight, it might provide enough of a spark.
I'm still waiting for a large spike down as the seller(s) unload the last of their order(s). Most bounce-backs occur after such a final plunge. Although so far today we do have a higher low (2820 c/w 2800), I don't think that we are quite there yet.
The next time the NASDAQ closes lower, I'll be putting in an order 5% below market price anticipating that final plunge. Currently, 2700 is my entry point. What entry point do others have, and what's your rationale?
BC
I dont think growth is in question to be fair, you can always hang out for the next step sure, but so far so good with growth. I know some are commenting on the figures for the "all important" US, but they showed decent growth, but yes early days there.
I think the delay in the SP bounce is just that this share has further to fall than most. The NASDAQ has finished higher last few sessions, but only due to late rallys, it still looked volatile (making for some surprisingly thrilling viewing!). I suspect people are looking to get back in to Xero but just waiting for the NASDAQ to be more convincing in its sure-footedness.
As to comments that the "sentiment has changed", this is probably true, if generalised, but sentiment is always changing, and given the wider context of nothing dire on the immediate horizon for global markets, I doubt the sentiment will not turn back to eagerness. Seems like just a good shake of the tree to me.
Disc: Holding but have sold and re-bought a couple of times on way down.