Here is what I believe is happening.
SON is in a inv cup and handle pattern, with the initial handle under formation.
1. Its currently short term over bought
2. Initial Handle formation is in the process. It may be up to 30% of the cup and hit resistance at 50.00, though currently the stock seems to stabilize the current price.
3. currently the volume seems to be on par with the 90 day average. a reduction in volume over the next few days should confirm the over bought situation is loosing steam.
4. in the event the stock blows past 50.00 and touches 51.00, if it does this and pierces 51 with good bullish volume, the trend and pattern is no longer valid.
5. with current trend and pattern the stock is likely to drop down to 47.00 and take that as support. further below 47.00 its hard to say what the stock might do, take support around 46 or 44.65 (long term trend line support) is entirely possible.
- cheers
Scorp
SON is in a inv cup and handle pattern, with the initial handle under formation.
1. Its currently short term over bought
2. Initial Handle formation is in the process. It may be up to 30% of the cup and hit resistance at 50.00, though currently the stock seems to stabilize the current price.
3. currently the volume seems to be on par with the 90 day average. a reduction in volume over the next few days should confirm the over bought situation is loosing steam.
4. in the event the stock blows past 50.00 and touches 51.00, if it does this and pierces 51 with good bullish volume, the trend and pattern is no longer valid.
5. with current trend and pattern the stock is likely to drop down to 47.00 and take that as support. further below 47.00 its hard to say what the stock might do, take support around 46 or 44.65 (long term trend line support) is entirely possible.
- cheers
Scorp