Hello Chart Watchers!
If you've been following the blog, you'll know that we've been waiting for the breakout. I didn't give an update yesterday because we were still waiting for it to happen.
NOW IT DID! WOOO! While it's reason to celebrate, we need to focus on answering a couple of important questions: are we finally out of it, and where do we go from here?
Are we out of the woods?
Comparing this breakout to the previous one we had a couple of days back, this one appears to be much healthier overall. How do I know this?
One, the breakout led to the formation of a W double bottom, a sign that bears have tried to push the price down, but we have once again provided strong support at key levels.
The other reason why was this is the first time in a long time where SPS price is ABOVE our moving averages (EMA 21 and 55). This is a very positive sign that momentum has shifted to the upside.
Now, where do we go from here?
Scenario 1: Blast Off
The most bullish case is we move on from here and continue moving higher. When breakouts happen from descending channels, the technical target for the breakout is usually where we formed the channel, at 61 cents. Now that that's met, the next short term technical target is at 75.7 cents.
Scenario 2: Slight Cool Down
Can we still go down from here? Sure. However, if we go down one more time and hold key support lines it'll even be triple confirmation that this level is strong. If price chills for a bit and goes down, we'll be forming **TWO **bullish patterns at once: a cup and handle, and an inverse head and shoulders. The same technical target applies, so regardless of what scenario plays out: see you guys at 76 cents (and beyond)!
From a technical standpoint, the short term looks really promising, with a confluence of high probability bullish outcomes. Let's see how it plays out. In the meantime, regardless of what happens, we'll continue to monitor it whether it's bullish or bearish.
DIAMOND HANDS! :D
Take care everyone.
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awesome analisis!
thank you!
Yes! SPS is rising again! We'll see where it goes now! Thank you for your post! You've been upvoted by @rosiew for Early Bird
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