It seems that 3PAR is rallying again.
For the past 3-4 days, it has been trying to break the kumo resistance on the Ichimoku Daily Chart.
Currently, the price is right at the kumo resistance level at 10.70. Just ahead a little bit more, another resistance can be found at 10.87.
Looking at the leading kumo, we can also see that it has twisted; a suggestion that the trend has changed.
I will be very careful on placing big bets on 3PAR at this moment. It was only back in July that they issued revenue warning. What has changed since then?
The only thing I know is their appointment of a Regional Director for Asia Pacific. In my opinion, iff things go smoothly, the earliest we can see a deal will be February 2010. Remember, Asia Pacific is fragmented and is not a homogeneous market like the US, or Japan.
Vested. I have a small position as of this writing.
On the Ichimok Weekly Chart, we can now see that China Communications Services (0552) is sitting just on top of the kumo support.
If this support breaks (or if it does not move up within a month), we can easily see that the price will pierce through the support and that will signal a bearish outlook.
