Dallas, Texas 04/17/2014 (FINANCIALSTRENDS) – XG Technology Inc (NASDAQ:XGTI) on the daily charts has broken below key support zones at around $2.25 and is currently trading below its 200 day moving average as well as the 200 day moving average. The downward price action is accompanied by high volumes which is a bearish sign and allows us to believe that the price action would continue on the downside. The 50 day moving average for the stock is currently at $2.36 and the 200 day moving average currently stands at $3.45.
The momentum indicators for XG Technology Inc (NASDAQ:XGTI) are in bearish territory and the support zone break validates the bearish stance and also convinces that even the momentum supports more downside to the stock. The relative strength of the stock on the daily charts are exhibiting no inherent strength and is complimenting the downward momentum in the stock.
On the weekly charts XG Technology Inc (NASDAQ:XGTI) the stock has broken below the 50 day moving average which currently stands at $3.91and also broken the key support level of $2.21. The momentum indicators along with the relative strength index for the stock are both showing bearish divergences on the weekly charts and are not showing any signs of recovery which makes us believe that the stock might retest the levels of $1.05 in the coming weeks.
XG Technology Inc (NASDAQ:XGTI) announced yesterday the pricing of its stock for the public offering which is being used by the company to raise upwards of $10 million. The street believed that the pricing was way below its current market price and used this opportunity to sell the stock in the open market. XG Technology Inc (NASDAQ:XGTI) stated in a press release that it intends to use the proceeds from this issue for general corporate purposes.