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Friday, April 13, 2012

SPRD - Reversal In Progress

A classic bottoming in process with SPRD.

  1. Initial down trend is broken
  2. The low is back-tested
  3. Positive MACD divergence on lower low
An icing on the cake is the exhaustive volume at the lower low.  We're now waiting for the high of the initial break-out bounce to be tested for longer term reversal confirmation. Currently, price is at a confluence of resistance: the horizontal resistance and the projected down channel line.  Also, the fact that we had a lower low suggests that this bounce should be two-legged, meaning we could have a down before going back up.


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