A follow up on my previous post on 3PAR.
What happens after the gap resistance?
1. 3PAR move up very quickly when it break through the gap resistance; it could be a short squeeze or just speculators trying to front run as 3PAR’s management is on the road with its various presentation at conferences.
2. Nonetheless, as ‘Zoltan’ has suggested, 3PAR hit the huge kumo resistance and is now forming a flag
What’s next? From the Ichimoku chart,
1. The first support is around 10.0 to 10.1, where the previous gap is. That is also where the Kijun sen is.
2. We can also see that the Tekan sen is just starting to cross the Kijun sen. But with such a huge kumo resistance ahead, I am not about to call for a strong bull call on this. Unless, there are deals going on (eg. M&A). Without such catalyst, it is better for 3PAR to form a base at this level before breaking out of the resistance ahead.
3. I will try wait for confirmation that the support level holds before making an entry on 3PAR.