A 12 day downtrend is ongoing for XP. A possible change of direction spotted from Friday; generally flat but with a slight bullish bias, XP ranged between $16.34 and $16.57 before closing higher at $16.5.
Trend-following investors would be interested to note that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Asset volatility analysis shows that XP's lower Bollinger Band® is at $16.04, indicating that the market is oversold and fertile for new buyers. Support/Resistance levels obtained from chart analysis indicate that XP could be slowing down soon as it approaches resistance at $16.6. Of course, crossing it might suggest further gains are ahead.
With market volatility ebbing, the current technical outlook indicates XP will remain range-bound for the immediate future.
This rally in XP's share price coincided with other financials stocks as Visa Inc. added 0.97% to its value, and traded at $213.79. Morgan Stanley gained 1.09%, as it traded at $90.91.
9 months ago the Brazilian wealth manager reached a significant high of $35.75 but has consequently lost 54% since then.