My initial assessment (not the publish date of the article), was "bullish", but the last few days have tempered this somewhat. My original opinion was for a stock which had handily cleared $6.00 resistance on big volume, and (successfully) backtested the breakout gap at $5.50 before recovering.
However, last week saw a rapid drop back to $5.50, and an eventual undercut of $5.50 which managed to hold at the 200-day MA. This drop was enough to break the bullish technical picture, which is now net bearish.
Bulls are not entirely out of the picture: $5.50 is still a point of support as of Friday's close, and the 200-day MA currently at $5.18 can't be excluded as a defense point.
Should the 200-day MA break, then the next level of support is $4.49.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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