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- 1 Exela Technologies remains bearish even after its recent breakout.
- 2 The recent price rally tries to nullify the prolonged bearish trend.
Exela Technologies is a leading provider of Business Process Automation solutions, and has been recognized as a “Major Player”. The company announced the recognition in the IDC MarketScape for Worldwide Finance and Accounting Business Process Services in the Cloud 2023 Vendor Assessment. However, the poor financial results do not bode well for XELA stock. The stock was recently trading near $0.05, even after a breakout of about 23% in the intraday session.
Poor Financials From Exela Hinder Bulls
According to the financial statements released by Exela Technologies, the annual revenue has declined in comparison to the previous fiscal year. The current as well as non-current assets saw a significant decline of $315,111. A similar drop was observed in the cash flows, causing the free cash flow to be valued at negative $150,457.
Exela Technologies has a P/E ratio of negative 0.03 in comparison to the industry having a ratio of 27.08. A low P/E ratio signifies the company is dramatically undervalued. The negative EPS of the company signifies a loss making venture, and is pushing shareholders to vacate the marketplace.
XELA Stock Price Analysis
The XELA stock price has been under severe downtrend and recently formed a falling parallel channel. The bullish trend in the stock began after the company released its financial reports for the period ending in December 2022. The current uptick in price is struggling to nullify the prolonged bearish trend that has set a negative outlook for XELA stock. The trading volume rises along with the price and suggests a spike in the buyer interest.
The Bollinger Bands diverged after a parallel movement, suggesting a possible rise that breaks the channel. The RSI shot up and held trades near 55-range, suggesting increasing buyer participation. The strength of sudden rise in RSI is hard to determine, but if it remains unchanged, it can establish bullish momentum. The MACD diverged under buyer influence and recorded ascending bars in the region above the zero-histogram mark. The Super Trends marks the genesis of bullish momentum.
Conclusion
Exela Technologies saw a poor financial performance which cast a shadow over the struggling bulls. The recent rally of about 23% may not be enough to nullify the bearish trend and the market bears may prevail. The XELA stock price can set the market under temporary uptrend. But for it to turn strongly bullish, the buyers have to turn pro-active. The rising prices can face weak resistance near $0.0518, if not the level near $0.0625 will act as a strong resistance.
Technical levels
Support levels: $0.0400 and $0.0320
Resistance levels: $0.0625 and $0.0745
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
