XEL SUB 60P

I'm not sure that 53.6p low was genuine. It's on my freebie chart but IIRC the spread never went near that level on the day (could have memory failure though!).

Slow Eddie; indicators can remain oversold/overbought for ages so you cannot simply trade something on that basis. In fact, when oversold you'll often find that bounces get sold into and vice versa when overbought (dips get bought).

Trying to catch the bottom is a very dangerous game as I know from my own bitter experience.

Hi Steve
As ignorance only gains by asking questions can I just ask if the RSI dropping through the lower channel line doesnt indicate it being oversold? Also is the support not just above 60 on your chart? Which looks like it might hold?

Steve would 53.6p be considered a significant support level (from 26/06/12)?

Thanks for your dose of reality Steve ')
I agree with your sensible advice that it is not clear it has bottomed yet.
Still a lot to learn.

PS Note that previous uptrend support got backtested perfectly at 106p - great place to short it if your broker allowed (sadly, mine didn't).

Hi Count, good to see you over here

I'm not sure that "cheap as chips" qualifies as a sound technical support level on which to buy a plummeting share but there is some support at 50.9p from a gap and double top:



dl.dropboxusercontent.com/u/20815047/FTS...XELdaily31_03_14.png

If that level fails (as the 61.6p gap clearly did) then next support is 35p. As ever, it's best to wait until a key support level or confirmation that a bottom has formed before buying as it could just keep on dropping.

Isn't it interesting how the AIM (and ex-AIM) darlings are the ones getting slammed? Easy pickings for the City...