Support at the 50% Float Line Below the Breakout Line

On August 21st, XING pierced its top float channel line.  This line is first and foremost a point of resistance.  During the next two weeks XING traded lower right down to its dotted 50% float channel line.  This line on stocks that are moving higher is a point of support.  On September 22nd, our scanning system found that this stock was bouncing higher away from its 50% support line.  In the next 22 days it move 55%. The principle here is that when a stock heads higher it usually doesn't go straight up. But instead it makes an A wave up, then pulls back in a profit-taking B wave and then heads up again in a C wave. A close study of Float Charts reveals that the dotted 50% Float Channel Line is a point of support from which stock head higher. That is exactly what happened to the this week's stock...XING

Our data base scans the market every night looking for stocks that are beginning to move higher right at this dotted line. They are known as ABC Float Set-Ups.

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