Technical Setup: XP INC - CLASS A Appears Poised for a Breakout.

Our stock screener has detected a potential breakout setup on XP INC - CLASS A (NASDAQ:XP). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NASDAQ:XP.

Analyzing the Technical Aspects

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, XP scores 8 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, XP is showing a nice and steady performance.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• XP is one of the better performing stocks in the Capital Markets industry, it outperforms 98% of 206 stocks in the same industry.
• XP is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so XP is lagging the market slightly.
• Looking at the yearly performance, XP did better than 92% of all other stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• In the last month XP has a been trading in the 24.43 - 26.78 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of XP contains the most current technical analsysis.

How do we evaluate the setup for NASDAQ:XP?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:XP has a 10 as its setup rating:

Besides having an excellent technical rating, XP also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 26.40. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 25.46, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for XP in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:XP?

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.

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 technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.