THE SPAR GROUP LTDShort
Another Failed Breakout for Spar
Updated
Spar Group rallied after a failed daily cycle 2, as is we are looking at a very short weekly cycle unless current cycle breaks back below R96.40, not entirely unthinkable given the following:
1. The move up saw declining volume.
2. The RSI & TSI have shown negative divergence.
3. RSI is overbought, failed breakouts on overbought conditions usually lead to quick reversal.
History shows that Spar investors are no strangers to violent sell-offs & we could be back to the support of the parallel channel in little time.
A close above the channel resistance would be a stop loss.
1. The move up saw declining volume.
2. The RSI & TSI have shown negative divergence.
3. RSI is overbought, failed breakouts on overbought conditions usually lead to quick reversal.
History shows that Spar investors are no strangers to violent sell-offs & we could be back to the support of the parallel channel in little time.
A close above the channel resistance would be a stop loss.
Trade closed: stop reached
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