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Will XP INC - CLASS A breakout?

By Mill Chart

Last update: Sep 18, 2023

We've identified XP INC - CLASS A (NASDAQ:XP) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NASDAQ:XP for further developments.

XP Daily chart on 2023-09-18

What is the technical picture of NASDAQ:XP telling us.

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Overall XP gets a technical rating of 7 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, XP is only an average performer.

  • The long and short term trends are both positive. This is looking good!
  • XP is one of the better performing stocks in the Capital Markets industry, it outperforms 94% of 206 stocks in the same industry.
  • XP is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so XP is leading the market.
  • Looking at the yearly performance, XP did better than 93% of all other stocks. However, this overall performance is mostly based on the strong move around 4 months ago.
  • In the last month XP has a been trading in the 23.88 - 27.71 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.
  • Volume is considerably higher in the last couple of days.

For an up to date full technical analysis you can check the technical report of XP

How does the Setup look for NASDAQ:XP

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:XP currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

XP has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 25.73, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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