Founded in Wellington, New Zealand, in 2006 and still headquartered there, Xero provides a cloud-based accounting software platform for small and medium-sized businesses. XRO has three offices in New Zealand, six in Australia, three in the UK and US, as well as offices in Canada, Singapore, Hong Kong and South Africa. Its products are used in over 180 countries. Michael Gable explains why he thinks its share price is on an upward move.
“Like many other technology stocks, Xero’s share price has pulled back sharply over the past few months. However, I can see a reversal on the share price chart which is indicating that XRO is likely to recover from here,” Michael said.
“Firstly, it has come back to the key 61.8% Fibonacci retracement level when we measure the rally from the 2020 low to the recent peak.
“It has also formed a nice double bottom on the daily RSI (circled), which is an indication that downwards momentum has bottomed.
“The last few weeks has seen its first attempt to form a base here with a push above $100.
“It then consolidated above $100 and this week we saw it push beyond resistance at $105. “This stepping up in the share price is a positive and is indicative of a stock that has formed a low and is entering a new uptrend,” Michael concluded.
Xero Limited (XRO)
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