Late strength seen in Xcite Energy to cap a great week for holders

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It piqued our interest to see that volume in XEL continued to be heavy today coming on top of 2 prior days of strong volume. There was also heavy demand into the closing auction with just under 160k shares traded at 112p – nearly 3p higher than the VWAP and a good 4p higher than the pre auction trading level (see below). Someone seemed in a rush to buy a chunk into the close.

If we look at the YTD chart below and consider the closing level of this week towards its highs in Wednesday then technically we are in great shape. This type of volume and married share price strength is nearly always a precursor to some type of announcement. The last time the RSI cut through 50 on the weekly line, as we can see in the chart below, the stock promptly stuck on over £1 inside 8 days. I guess all will be revealed imminently…

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