3Par issues revenue warning recently and with that news it gapped down hard from 11.45 to 9.68
I was caught off guard. A huge mistake on my part as I have not been reviewing its daily chart for some time.
A closer look will review that there is a danger on July 8 as the price fell and cuts the Kijun sen. A signal that should have flagged off and tell me to take my profit and walk away.
With the gap down, needless to say, the Daily Chart also exhibit a bearish Tenkan sen – Kijun sen cross. (>> me: Needless to say, I cut my position the moment I saw this news.)
On the Weekly Chart, we can see that the kumo is thinning out; probably a suggestion that the demand for the stock is going down as well. With thinning kumo as support, it will suggest that the support level is weak below the current price level.
And it is not difficult to understand this. 3PAR has said that operating margin will be reduced
More on 3PAR’s earning can be found here at Barron’s
