Exide Technologies (XIDE)
"Exide Technologies, with operations in 80 countries and fiscal 2009 net sales of approximately $3.3 billion, is one of the world's largest producers, distributors and recyclers of lead-acid batteries. The Company's four global business divisions – Industrial Energy Americas, Industrial Energy Europe, Transportation Americas, and Transportation Europe – provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications. In addition, Exide’s Asia Pacific/ Rest of World operations contribute sizeable revenues to the Company, divided evenly between the Industrial Energy and Transportation products and services." (company website)
XIDE 4-month chart
XIDE 1-year chart
15 September 2009. Since early July, Exide has been trading upward in a fairly narrow channel, with small pull-backs in August. It is now testing the resistance line formed by the previous peak.
- Percentage price oscillator (PPO) — almost congruent with the signal line with a gentle up-slope
- Volume — heavily traded with several higher-than-normal up-days and no big down-days
Based on technical analysis, MarketEdge calls XIDE a "buy" in a "strong upward trend."
17 September 2009. By the close of yesterday's session, XIDE had gotten high enough above my buy-price that I created a stop-loss order that would trigger if the price fell back to $8.40 or lower. That happened in today's session, so I am stopped out of XIDE.
Some rumor must have swept through the stock exchanges because XIDE dropped from $8.75 at 10:14 down to $8.39 at 10:29, and it is now back up to $8.67 as I write this. This situation is precisely what makes using stop-limits to tricky: set the stops too loose, and you might as well not have them; set them too tight, and you get stopped out by an anomalous trade (which is apparently what happened here). But the rub is that you can never know if the anomalous trade is just that — or the start of a stampede for the exits. Oh, well, churn and earn.