Exela Technologies Surges Following Partial Sale: A Technical Analysis

Exela Technologies, Inc XELA was trading over 8% higher on Friday after announcing it had successfully completed the sale of one of its businesses, which caused the stock to confirm an uptrend.

The business process automation company sold its high-speed scanner manufacturing and maintenance business to Imaging Business Machines, LLC.

When the market opened, Exela surged about 22% on the news, printing a higher high to form an uptrend. An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.

The higher highs indicate the bulls are in control, while the intermittent higher lows indicate consolidation periods.

Traders can use moving averages to help identify an uptrend, with rising lower time frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Exela Chart: Exela confirmed a new uptrend by rising above the most recent high of $5.67, which was printed on May 31. The stock had previously negated its downtrend by forming a higher low on Thursday at $4.56.

• Although Exela formed an uptrend, the new higher high of $5.74 printed on Friday is only slightly above the previous high. Because of this, there’s a chance the stock may have printed a bearish double top pattern near the $5.70 mark.
• Bullish traders want to see big bullish volume push Exela up toward the $6 mark for confidence the uptrend will continue. Bearish traders want to see big bearish volume come in and drop Exela down under the higher low to negate the uptrend.
• Exela has resistance above at $6.48 and $8.92 and support below at $4.56 and $3.60.

Read Next: Tesla's $3B Jackpot: Analyst Projects Rival EV Makers Could Supercharge Its Growth By 2030