Key Reversal week? Or pullback in a trend continuation?
Share price sold off on Friday morning, recovered to positive territory before closing lower at the bell. The market in general sold tech pretty heavy on Thurs/Fri.
Somewhat concerning is the close below the price fork (White line) That is the first time since the uptrend started we have EVER seen a retracement below the current level of the trading fork since PRTS started moving up in March.
The RSI also barely breached the support line. Also the first time this has been breached since early March.
On the weekly chart
It's the first big red candle since the uptrend started.
The bottom wicks of the current bull pennant (hourly) look like the consolidation phase may be pushed out toward earning date.
Note that the SP did still close within the main channel (Green & Red line) so technically the trend is still intact. I am less concerned with a wick running outside the channel than if the close finishing outside.
The real telling thing for me here is volume. On the weekly level it was average to below average volume. Friday was well below average as well with less that half of the normal amount of shares traded. The bears seemed to lack follow through toward the lower range of price.
While I'm watching the action very carefully going into this week I am leaning toward that this was a normal pullback and NOT a key reversal moment.
Somewhat concerning is the close below the price fork (White line) That is the first time since the uptrend started we have EVER seen a retracement below the current level of the trading fork since PRTS started moving up in March.
The RSI also barely breached the support line. Also the first time this has been breached since early March.
On the weekly chart
The bottom wicks of the current bull pennant (hourly) look like the consolidation phase may be pushed out toward earning date.
Note that the SP did still close within the main channel (Green & Red line) so technically the trend is still intact. I am less concerned with a wick running outside the channel than if the close finishing outside.
The real telling thing for me here is volume. On the weekly level it was average to below average volume. Friday was well below average as well with less that half of the normal amount of shares traded. The bears seemed to lack follow through toward the lower range of price.
While I'm watching the action very carefully going into this week I am leaning toward that this was a normal pullback and NOT a key reversal moment.