Xero (XRO:ASX)
Technical charting analysis: Xero Shares have been on an amazing run over the last 5-years. We downgraded Xero to HOLD earlier this year as the stock was trading a rich valuation and saw that it had over extended but it was too difficult to determine where a support level would be found. We later upgraded to a BUY again in May 2021, as (marked in Purple) as we could see support at “the dip”, while business fundamentals were also promising. Since then, it has been traded well over the last 6-months but as can be seen it is still a volatile stock. At $146 we remain comfortable with the stock – unlike earlier this year its current run has not been as steep and is not grossly overbought like it was. We have identified support levels at around $130.