Trading Ichimoku

3PAR may continue on its downtrend after bouncing off its thin kumo support at around $10.80

For the past 2 trading sessions, the chart shows a doji (look at red arrows) which could be a signal to a reversal of the prior trend.

In this case, 2 doji appearing right after a rebound could suggest that the price will not go higher.

And if rebound fails, we can definitely see a lower high being formed again (look at the green arrows).

Already we have 1 confirmation of a bearish cross with the Tenkan sen cutting the Kijun sen (highlighted in yelllow)

A break below yesterday’s low will be a clear sign that the price will not hold.

Interesting find I have today.

I did a search on Twitter for 3PAR and noticed among the results a number of hiring for 3PAR.

Among the job titles includes:

- Senior Account Executive

- Sales Operations Manager

- Inside Sales Representative

- Senior Planning Manager and more….(including engineering jobs)

What does this suggest?

3PAR is expanding (unless there is an untold exodus..which I doubt so). My gut feel is it is expanding to have more coverage of the market (and to improve its product further).

Generally, company size of 3PAR enjoys a culture where lots of people envy. Room for growth, in a growing market, game changing technology…. in other words, the chance of expansion is higher than replacement of talents.

At the same time, I am not sure what is the impact on operation costs.

Let’s keep this in view.

3PAR bounces off the kumo support and previous day candle is showing a bullish engulment; a sign that the bulls will not let it goes down further.

Based on this, couple of things could happen (speculation):

1. Sales is going to meet expectations.

2. More development coming up. (Unlikely to be acquisition)

Edit (Update):

Looking at the Ichimoku chart again, I maintain the view that there is a need to keep a close watch on the Support levels.

The kumo support remains thin, though the leading kumo has developed a fair bit and is showing uptrend movement.

Protect the downside, and ride the upside