In my previous post on 3PAR, I suggested that a reversal may be coming as a long legged doji is spotted.
Yesterday, 3PAR has another round of sell off with above average volume.
As far as the uptrend is concern, there is still no signs that a bearish trend has occured.
I will be looking at the support of $11.25
If it breaks $11.25, I do not think that the trend will hold as the kumo support below it is very thin (despite the leading kumo is showing an uptrend).
The key thing to note here is:
– 3PAR spike up partially on speculations that it is a target of acquisition
– generally, the kumo provides better support when a stock moves up on improvements in business fundamentals
– what are the other possible factors that can cause 3PAR to spike up and command such a price level?
– are the sales improving (especially outside of US)?