XEL seems to be following through nicely following the RSI breakout with a bullish marubozu today and a close at the day's high, right at the 106p breakout level.Note also how the RSI backtested and bounced (circled). I usually prefer this test to be after a number of days rather then so quickly but as long as the RSI maintains this uptrend, and especially if it can get > 70 then there's a chance of a test of the trendline resistance , 113p and a possible breakout. We should be OK to move stops to below today's low but bel Original link...

Today was the 3rd inside bar in a row for XEL but with lower highs and a 104.5/104.25p low each day it's looking a lot like a small descending triangle to me which suggests it will break down, probably tomorrow.If so, the target would be about 5p so around the 99p mark. However, we should not assume that it will break down but wait to see which way it does break and then trade that direction. More importantly, we have the uptrend and downtrends converging imminently so they will decide the short/medium term direction. Original link...

Tricky one this. Clearly price has dropped through the trendline however the RSI has closed on its trendline which formed from the bullish divergence. Often, but not always, this can be a sign of a false breakout so there's still a chance it could reverse from here. If the RSI follows it down then that's unlikely until at least the lower trendline IMHO.There's a clear "cup" type formation with the "rim" at 113p so it may be worth looking to see if a handle forms - the RSI, currently suggests it could - back up to 112/3p which would target c. 130p if it occurs. Below 96p and the lower trendline and the drop could get nasty so make sure you have stops in place below the important 96p Original link...

In a departure from my usual Updata charts, here's the updated (no pun intended) daily chart for Xcite Energy.As I previously mentioned, the key to this was not the price trendline but the RSI trendline formed from the bullish divergence. We got the bounce yesterday with a doji candle in the price chart and these have both followed though nicely today to the extent that it managed to close back above the short term price uptrend.This is a classic false breakout and shows how important it is to use RSI in conjunction with price to help avoid getting caught out. I'm now long on this with a tight stop below 101p. My initial target will be the 112/3p resistance but if it does get back there then there will be a nice cup and handle pattern which should target 130p and then beyond when we consider the ascending triangle from...

OK, so $1265 wasn't the bottom for gold and I missed the bounce, however, there was a good opportunity to go short again on this based on a simple backtest of the previous support (breakdown) level at $1268.9 (I did post on the POG comments that I intended to short this here).The next major support is at $1157 and is shown on the weekly chart to the left. Here we see that $1157 is actually a double support and it's therefore really  quite important that it holds or it could go a fair bit lower quite quickly - it's the weekly low from July 2010 (which formed a weekly hammer which resulted in a breakout to the all time high) and also the 61.8% Fib of the entire move up from $682 lows in Oct 2008.Ultimately, this could go lower than even this level but we'll concentrate on this for...