Xylem Inc. (XYL) reported a fourth-quarter earnings beat and started 2023 guidance Tuesday. Let's check out the charts of this water technology company to see how the short and long-term are shaping up.
In the daily bar chart of XYL, below, I can see how the shares made a low in June and a retest in July followed by a rally into January. Prices corrected lower in January and pulled back towards the rising 200-day moving average line.
Trading volume does not look like it expanded or increased since the July retest and the On-Balance-Volume (OBV) line has worked lower from August. The volume and OBV movement are not supportive. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but poised for a cover shorts buy signal.
In the weekly Japanese candlestick chart of XYL, below, I see an improving picture. The shares gapped lower in January but they are also holding above the rising 40-week moving average line. There is a lower shadow below $100 and that suggests that traders are rejecting those lows.
The weekly OBV line is trying to hold and improve -- the jury is still out. The MACD oscillator is above the zero line but has crossed to the downside for a take profit sell signal.
In this daily Point and Figure chart of XYL, below, I can see an upside price target in the $114 area.
In this weekly Point and Figure chart of XYL, below, I can see a possible or potential downside price target in the $77 area. I am not sure what price will turn this chart bullish.
Bottom-line strategy: Aggressive traders could go long XYL at current levels risking a close below $99.
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