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February 22, 2023
While XP was in the midst of a 4 day downtrend— in which it lost a total of 17.84%— A possible change of direction spotted from yesterday; after closing at $12.91 on Friday, XP rallied as high as $14.06 but ended the day at $13.31.
United States FOMC Meeting Minutes is next today at 19:00 UTC.
Meanwhile, United States Existing Home Sales (Jan) came out at 4 million, while a consensus of analysts was expecting 4 million. United States 2-Year Note Auction released yesterday at 18:00 UTC with a figure of 4.673, while the previous figure was 4.139. United States Existing Home Sales released earlier showed a marked improvement to -0.7% from the preceding data of -2.2%, but fell short of the 2% figure forecast by a consensus of market analysts.
XP's notable support and resistance levels: although XP Inc. is appreciating today after rising as high as $14.06, price action is now slowing and consolidating around 62 cents below the $13.93 resistance level. Technical analysis trend indicators suggest 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. Yesterday's price action generated a Japanese candlestick pattern showing 'Bullish Harami' is a candlestick chart indicator used for detecting reversals in an existing bear trend. It is generally indicated by a small price increase that's contained within a broader downward price movement and is commonly associated with a bearish trend coming to an end. Fibonacci-minded traders witnessed a key Fib resistance level of $13.82 holding firm – an indicator of highly concentrated supply around this level. Momentum evaluation shows that the Relative Strength Index indicates XP is in an oversold condition, which could precipitate a reversal and set up a new bullish phase. According to asset volatility analysis, XP's lower Bollinger Band® is at $13.23, indicating that the market is oversold and fertile for new buyers.
All in all, the technical analysis suggests XP has no clear-cut direction.
This rally in XP's share price coincided with other financials stocks as HSBC Holdings traded at $39.04 after closing yesterday's trading day at $37.34 (up 4.55%).
While XP was bullish yesterday, the following financials stocks underperformed: S&P Global went down to $350.79, losing 2.78% after it closed at $360.83 yesterday.
Also worthy of note, as things stand, upcoming United States Crude Oil Inventories data is projected to fall short of market expectations with newly published data of 1.17 million, following on from the preceding figure of 16.28 million. New data is set to be published tomorrow at 16:00 UTC. Tomorrow at 13:30 UTC data for United States Initial Jobless Claims will be released, with an expected decline to 200,000 from the preceding figure of 194,000.
Furthermore, the market is looking at United States GDP is expected tomorrow at 13:30 UTC.
The Brazilian wealth manager reached a significant high of $33.84 around a year ago but has lost 61.85% since then.
