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Systems Xcellence One To Watch

07/12/11 11:26:50 AM
by Koos van der Merwe

Systems Xcellence provides electronic transaction-based software applications for the managed-care sector of the health care industry.

Security:   SXC-T
Position:   Accumulate

Systems Xcellence (SXC), a Milton, Canada-based software company, was founded in 1993 with additional offices in Dallas, Scottsdale, and British Columbia.

Figure 1 shows an almost continual rise from the low of $5.08 in March 2008 to its present level of $62.33. Can it go higher? The chart suggests it can, simply because it does not appear to be affected by bearish variations in the index. The chart shows how the price is moving with its corrections in an uptrend with buy signals given by the relative strength index (RSI). At the moment, the RSI is at oversold levels, so we could expect a correction down presenting another buy opportunity.


FIGURE 1: SXC, DAILY
Graphic provided by: AdvancedGET.
 
The weekly chart of Figure 2 shows how the share price traded between a high of $14.77 in October 1995 to a low of 28 cents by October 2001. The chart shows how a cup & handle formation formed with the share price breaking above the handle in June 2006. What caused the share price to rise so strongly? President Barack Obama was only elected in November 2008, with his medical plan passing Congress during 2009. One could research the Internet in an attempt to find out what the company did that caused its price to rise so dramatically, but is it necessary? Figure 2 is suggesting that a correction possibly to the support line at $54.75 could occur, confirmed by the RSI, which does suggest negativity ahead. This was confirmed by the daily chart in Figure 1, which is suggesting a low of $52, should the price fall at the same rate as previously.

This is a share for your watchlist.


FIGURE 2: SXC, WEEKLY
Graphic provided by: AdvancedGET.
 



Koos van der Merwe

Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.

Address: 3256 West 24th Ave
Vancouver, BC
Phone # for sales: 6042634214
E-mail address: petroosp@gmail.com

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