Would be interesting to know if any positive XRO news affects the correlation in the short term, but for now it does look like it's following the nasdaq very closely.
the correlation is higher in the 90% range so you can make assumptions for yourself of how mauch the price reflects the company and how much is the nasdaq, dont get me wrong my personal oppinion is xero is a great company and i hope they eventually become the biggest company in nz but you should know the difference
December's support at 2900 may well provide the double bottom we are looking for. Have this stock's fundamentals and/or market appeal really changed to the point that it won't bounce back from the low 2900's? I don't think so.
If it drops further through 2950, me thinks a purchase soon after with a stop loss at say 2875 provides a decent risk/reward ratio for a quick profit later this week.
If on the other hand, 2950 holds then that's also a good sign for holders.
BC
To foretell the future, one must first unlock the secrets of the past.
December's support at 2900 may well provide the double bottom we are looking for. Have this stock's fundamentals and/or market appeal really changed to the point that it won't bounce back from the low 2900's? I don't think so.
If it drops further through 2950, me thinks a purchase soon after with a stop loss at say 2875 provides a decent risk/reward ratio for a quick profit later this week.
If on the other hand, 2950 holds then that's also a good sign for holders.
Stating the obvious here but DIL has been its own worst enemy. Not much to gain by comparing XRO and DIL in my opinion.
Just looking at a squiggly lines on a chart ......and for whatever reason the XRO squiggly line closely follows the DIL all the way up and so far all the way down (allowing for the different time frames of course) ....and if squiggly line continues e same way then 20 bucks is on the card
Maybe DIL was its own worse enemy .....but at the end of the day the real reason was a market reality that it was grossly overvalued ......maybe the same reason the XRO squiggly line has started to follow the DIL squiggly line down.
For a stock trading at 50 times sales and with no earnings maybe following squiggly lines is as old as any way of estimating/evaluating what XRO is worth
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