SPRD extended the decline off the record high at 29.98 (16 Nov) decisively through the 25.50 pivot support to confirm a double top formation (at 28.75/29.98 highs). The bearish RSI divergence (comparing 28.75/29.98 highs) suggests further downside as well. Further weakness exposes 20.65 (Support 1) near the rising trendline support (off 8.59/16.52/16.11 lows) and close to the 21.50 double top target measured from 25.50. A breakdown below there would open the 16.11/16.52 support zone (Support 2) near the 61.8% retracement of the 8.59/29.98 rally.
It would take strength above 26.96 (Resistance 1) to delay bears. However, only above 29.39 (Resistance 2) would negate and shift focus higher towards 29.98 (Resistance 3) for a retest.
Trading Indication:
Short-term: Sell at 26.40 or higher;
Target at 20.65 and lower;
Stop Loss at 27.00 (2.3%)
Long-term: Possibly buy lower
It would take strength above 26.96 (Resistance 1) to delay bears. However, only above 29.39 (Resistance 2) would negate and shift focus higher towards 29.98 (Resistance 3) for a retest.
Trading Indication:
Short-term: Sell at 26.40 or higher;
Target at 20.65 and lower;
Stop Loss at 27.00 (2.3%)
Long-term: Possibly buy lower
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