XEL has sold off hard over since Oct 31st dropping over 7%, but this selling may be nearing an end as XEL hits support and the Piker Signal has flashing oversold.
XEL at Support: The selling has push XEL right to a support level from early in the year. This level held XEL up keeping it above the 26.08 and 25.89. There is the potential for buyers to come in at this level again to act as support. If this support does not hold XEL has the potential to drop another 6% down to 24.70, so any longs should have a stop at 25.89.
Oversold Signal: The Piker Signal is flashing oversold at this level so an oversold condition at support provides a favorable condition for a bounce. The last time XEL hit this level and was oversold it bounced over 10%, this of course was during an uptrending market. We see the oversold was less accurate over the summer, when the last oversold produced a 2% return this is a similar return to be looking for now.