04/17/00 Xilinx Inc (XLNX)
Points to watch: Looking
toppy.
XLNX crossed below its 55-day moving
average on Thursday for the first time since it crossed above it on
January 31st. Xilinx broke below important support at 63-65.50 on
Friday, a range which had provided support on 6 occasions in February and
March (the 50% retracement of the stock's January-March rally also falls
within this range at 65).
The stock held support at 56.75 on a
closing basis, ending the day down 11.75 at 58.13 after trading as low as
55 intraday.
Daily MACD gave a sell signal on Friday,
and most other major indicators continue to deteriorate. Daily RSI
showed a strong negative divergence with the price action at the March
peak, weekly RSI and stochastics have both fallen below 65 from extended
stays in overbought territory, and both daily and weekly OBV have turned
down.
A sell short signal would be given on a
break of Friday's low of 55, with the next downside support after a break
coming at 48.7-50 (resistance from November to mid-January, and just above
the stock's 200-day moving average at 47.3). Additional support is
at 40.8-42, and 37.5-38.6. Resistance is at 65.50.
