Xinyuan Real Estate Technical Update

XIN reports earnings tomorrow morning, and it is an important earnings report, as full year guidance for 2012 will possibly be provided, as well as a likely update on share repurchase extensions.

The stock is looking to close near its short-term highs.  Here is the current chart which suggest XIN may explode following earnings.  Bollinger bands are tightening to an extreme level, and there simply does not appear to be substantial selling pressure even after a strong run up.  Everything looks ready to go if the company can deliver decent earnings and guidance.

For Whacko Trader's earnings preview for XIN, click here.

For Whacko Trader's guidance preview, click here.

Here is the current chart.

MACD has held up nicely despite the potential for a significant bearish collapse, and the stock closing near highs today looks good as well.  For the sake of fairness, this bearish chart should be noted, showing XIN at the top of a descending channel.

However, the larger bearish chart pattern of the descending triangle has been negated, and it is this that likely points the way to future gains, as well as the fact that Federated Investors, a large mutual fund whose liquidation of Chinese stocks across the board has caused excessive drag on XIN's share price most likely, has completely sold out of its position in XIN.

Please fill out the polls on earnings and guidance.  Will be interesting to compare predictions versus the results tomorrow morning.  Good luck to all.

Disclosure: Long $XIN