Xunlei Limited Is Running Out Of Steam Time to Make Room For The Bears

01:03 11/23/2017

Don’t look now but the uptrend party for China based Xunlei Limited XNET  could be coming to an end on a trading screen near you, after six straight weeks of an uptrend. An overbought RSI, lower volume and a lower high from Tuesdays high should scream pull back for any bullish investor aching for more gains. This is where I’m calling the top.

The money train is about to have a correction and you can take that to the bank. The question is how low will this crowded play go before a reversal? Any bad news that hits the wires could throw the bulls into panic mode and send shareholders rushing for the exits. The short sellers have already seen today’s first signs of a pull back and I wouldn’t be surprised if they already have positions in this stock ready to take this elevator down.

On a positive note, Xunlei Limited announced earlier this month that it planned to release its unaudited financial results for the third quarter ended September 30, 2017 on November 16, 2017 before the market opens. On the 16th the company announced total revenue of $47.3 million, a 15.6% increase from the corresponding period of last year and up 14.0% from the previous quarter. Online advertising revenues (revenues primarily from mobile advertising) were $5.7 million, a 22.9% increase from the corresponding period of last year and a 9.7% increase from the previous quarter.

The company attributed the increase in total revenues on a year-over-year basis to the growth of cloud computing, live video and mobile advertising businesses.

Finally, it’s important to note that a major catalyst for the XNET  rally has been the introduction of the Wanke coin mining cryptocurrency project with a design similar to bitcoin's.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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